Public service broadcasting in Austria (ORF) is to be financed in the future, similar to Germany, by a household-related levy that replaces the previous device-related fee. This was decided by the government in Vienna formed by the ÖVP and the Greens on Thursday. In the future, the contribution will amount to around 15 euros instead of the previous minimum of 22.50 euros and will be levied per registered main residence or registered permanent establishment (for companies).

Stephan Löwenstein

Political correspondent based in Vienna.

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The decision of the Council of Ministers makes a commitment in principle to public service broadcasting and its sufficient funding. "From our point of view, high-quality public service broadcasting is important for a functioning democracy," said Media Minister Susanne Raab (ÖVP), who presented the decision together with Green parliamentary group leader Sigrid Maurer. Maurer promised that the financing would be "fairer, more transparent and cheaper" and would enable ORF to "continue to fulfil its educational mission in the usual quality".

The orchestra remains

A secondary aspect that has recently been the subject of lively discussion is the commitment to the continued existence of the Radio Symphony Orchestra (RSO), in whatever form and sponsorship. Details still need to be worked out. However, the legislative package is to be adopted in such a way that it comes into force at the beginning of 2024 at the latest. This deadline had been set by the Constitutional Court for a reform of financing. Last year, the court rejected the previous practice because it constituted unequal treatment that ORF's services could be accessed free of charge online, for example with smartphones or laptops.

So far, there are 3.2 million fee payers in Austria. Raab spoke of 400,000 households that will be added as payers of the future "ORF contribution". The previous "GIS fees" contribute around 680 million euros to the ORF budget of a total of one billion euros (the rest comes from advertising, etc.). According to Raab, the total volume should not increase. Rather, she referred to the savings presented by ORF itself, which should amount to 325 million euros cumulatively for the next four years. However, ORF Director General Roland Weißmann had explained in an interview with the F.A.Z. that this sum corresponds to the additional costs from inflation and other causes calculated by him last autumn; it is therefore not really a question of savings, but of refraining from higher expenditure.

"Special privileges" will be capped

Raab also wants to cap "unusual and excessive special privileges" in old contracts of ORF employees, if possible by law. These are, for example, special pensions, housing allowances or "horrendous severance payments" (severance payments). "Because public broadcasting is financed with public money, we will look at these special privileges and abolish them," the ÖVP politician announced. She admitted, however, that it was a difficult legal matter that had to be worked out first by the Constitutional Service and the Ministry of Justice. Green group leader Maurer said it was a matter of balancing a mismatch between the contractual conditions of older and younger employees. Overall, more transparency is to be created about the income of ORF employees. Raab named as possible role models the British BBC or the Austrian civil service law with its salary levels.

In order to comply with the requirements of the Constitutional Court, the government could have chosen two other ways, which were rejected: to extend the GIS fee to other devices or to finance the ORF from the federal budget. Of the previous GIS fees of around 22.50 to 28.50 euros per month, only 18.59 euros arrive at ORF. The rest is accounted for by sales tax, subsidies and art contributions from the federal government, which will be abolished in the future, as well as state contributions, which vary (only two states waive it, Upper Austria and Vorarlberg). The state contributions, which have nothing to do with public broadcasting, will continue to be added to the "around 15 euros" of the future ORF contribution. Those who are exempted for social reasons remain so.