Yle media license fee to be reduced amid budget cuts in Finland
Thursday 12th September 2024 on 21:10 in
Finland
According to Matias Marttinen, chair of the parliamentary working group on Yle, the media license fee will be reduced as a result of budget cuts to Yle. However, he noted that the impact will be minimal. “We are talking about a small reduction,” Marttinen stated during the evening program A-studio.
Marttinen explained that the principle regarding the Yle license fee has been to ensure that over the medium term, revenue from the fee and Yle’s expenses would be balanced. In recent years, the revenue collected from the Yle fee has exceeded the amount Yle has spent. “Therefore, I see this as more of a compliance with the spirit of the law rather than any significant new political decision,” he added.
One of the reasons cited for the cuts to Yle is to alleviate the tax burden. However, Marttinen did not directly address a question from A-studio host Petri Raivio regarding this matter. Instead, he justified the cuts by stating that they are necessary for balancing the state budget. “It is entirely justified that a publicly funded organization like Yleisradio participates in resolving the country’s economic situation,” he noted.
Yle’s CEO, Merja Ylä-Anttila, stated that the decisions made today demonstrate Yle’s adequate participation in the government’s cost-saving measures. Funding for Yle will be cut by about 11%. “I consider the reduction sufficient. I appreciate the parliament’s decision in this regard,” she said.
The savings will be implemented by freezing Yle’s index for the years 2025–2027 and raising the reduced VAT rate from 10% to 14% starting in 2026. By 2027, Yle’s budget will be approximately 66 million euros less than it would have been without the cuts. This year, Yle’s budget is around 594 million euros. After several delays, the parliamentary working group reached an agreement on the cuts. The effectiveness of these measures remains to be seen.