Belgium's Federal Government is ending the system of concessions for newspaper distribution and will retain subsidies for the next three years only for delivery in sparsely populated areas and for editions within the non-profit sector. From 2027, support will cease completely.
The Federal Government finally reached an agreement on the contract for the delivery of newspapers and magazines on Tuesday, Prime Minister Alexander De Croo and State Secretary for the Budget Alexia Bertrand announced.
The deal was reached after it was revealed that bpost competitors PPP and Proximy had emerged as the most suitable candidates for the new concession, rather than the national courier. While the government had not decided how to award the contract, it remained unclear what would happen to the €125 million in subsidies.
On Tuesday afternoon, De Croo and Bertrand announced that concessions would no longer be used. To avoid a standstill in distribution from 1 January 2024, bpost will be used for another six months, receiving €75 million in support. After that, it will be up to the publishers themselves to strike the most commercially interesting deal with a distributor.
No price hikes
The subsidies will not completely dry up in the next three years; publishers will receive tax aid for distribution in sparsely populated areas (municipalities with fewer than 225 inhabitants/km²). De Croo has said this concerns 10% to 15% of the population.
A quarter of those municipalities are in Flanders; three quarters are in Wallonia. Additionally, subsidies for the distribution of expenditure of the non-profit sector, for example of the trade unions, will remain in place all over the country.
But after those three years, the subsidies will stop completely (unless the next government decides otherwise).
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According to Bertrand, this will bring structural savings of €125 million a year, starting from 2027. In 2024, subsidies will fall by €35 million, to be reduced by €80 million in both 2025 and 2026. In three years' time, the savings will therefore be €195 million.
De Croo does not expect newspaper subscription prices to suddenly go up sharply. "I do not quite see why. We continue to provide a piece of support in areas that are more difficult commercially."
What the consequences will be for bpost remains to be seen.
