Catch 22: The Privatization of Danish TV 2 vs. EU Rules of State Aid

Abstract

Since 2001, the Danish government has wanted to privatize the public broadcaster TV 2; however, the sales process has been halted. Ap- parently the EU rules on competition block for the will of the majority in the Danish parliament. The presentation explains this paradox by de- scribing the historical development of two processes: the attempt to the privatize TV 2 and the state aid cases against TV 2, which were opened by the Commission and now pending at the Court of First In- stance. The conclusion finds no inconsistency between the govern- ment's wish and the rules on State aid, but TV 2 has unlawfully trans- ferred funding for programming to equity capital, and the Commissi- ons has misinterpreted the conditions for using Article 86(2) in the Treaty in the evaluation of the recapitalization of TV 2. These two processes now obstruct each other.