Yle faces structural changes and major budget cuts 

4th September 2024
Following a parliamentary evaluation and ongoing debates about the funding of Yle, the Act on the Finnish Broadcasting Company will be amended to boost transparency on its operations and finance.   
Yle
Helsinki, Finland - Pasilan linkkitorni, also known as Yle Transmission Tower. Credit: Lev Karavanov/iStock

IN BRIEF : 

  • The Finnish public broadcaster YLE announced important structural changes to start in the fall.
  • The Parliamentary working group commissioned to assess Yle’s operations and funding did not reach an agreement on the future of the public broadcaster’s funding.
  • The Finnish government announced it would amend the Act on Finnish Broadcasting Company to strengthen Yle’s transparency on its spending and operations.

IN FULL:

– By Charlotte Pion

The Finnish public broadcaster, Yle, has announced structural changes are to come in the fall. The decision came as a parliamentary working group assessed the services of the organisation and studied its funding. Through these reforms, the public broadcaster said it expects to improve its operational efficiency and flexibility.  

As such, the company planned the merging of certain departments, and shrinking the management structure. An important part of this strategy was also to ensure that the organisation develops the best possible conditions to strengthen Yle’s digital services for the future.  

Read more: New wave of criticism for proposed Papua New Guinea media law

“With organisational changes, management structures are condensed and operational efficiency and flexibility are increased. The continuous development of digital services is of paramount importance in the future media environment, which is also tightened by the increasing possibilities of artificial intelligence,” said Yle’s CEO, Merja Ylä-Anttila.  

Additionally, changes within the management took place, as one of the general counsellors has decided to leave heris position within the management team, in order to focus on issues related to the European Media Freedom Act within Yle.

These reforms were announced as the government declared the Act on the Finnish Broadcasting Company were to be revised.  

The Ministry of Transport and Communication stated that these amendments were necessary to increase the transparency the operations and spendings of the public broadcaster.  

Listen toour podcast

Uncovering and exploring the biggest
issues facing public media

Podcast
Listen
A lengthy parliamentary evaluation  

In November 2023, the Finnish government appointed a parliamentary working group, bringing together members of each party, whose mission was to evaluate Yle’s public service duties and its funding.  

After eight months of negotiations, the publication of this report, first meant for April 2024, has been delayed following continuous disagreement between two major parties on the funding of Yle.  

A first proposition on the funding of the public broadcaster presented in July was rejected by the parties of Left Alliance and the Greens, forcing the parliamentary working group to resume the negotiations. The compromise proposal included raising the VAT rate paid by Yle from 10 percent to 14 percent starting in 2026.  

The proposal also suggested freezing Yleisradio’s index increases until the end of the government term. If this measure was put in place, Yle would lose up to €47 million of funding in 2027. According to HS, Yle’s yearly budget would fall by €65 million if both these plans were applied.  

These heavy budgetary cuts pushed by the right-wing Finns Party would greatly affect Yle’s own operations as well as the Finnish private audiovisual field which gets significant investment from the public broadcaster.  

The rejected proposal also included advice to improve the company’s transparency on their spending and services.  

“It will certainly have an impact on the parliamentary work of the following government periods as well” – Sinuhe Wallinheimo, Member of Parliament and chairman of Yle’s supervisory board

 Beyond public media’s future 

The uncertainty over Yle’s future funding has consequences further than just the well-functioning of the public broadcaster. According to Mathias Martinen, the Chairman of the parliamentary working group, it also concerned the continuation of the cooperation of all parliamentary groups.   

If no agreement is met between the parliamentary group, the matter will be transferred to the government to decide. 

However, this perspective might represent a danger to Finnish parliamentarism, stated Member of Parliament and chairman of Yle’s supervisory board Sinuhe Wallinheimo.  

Yle’s funding has traditionally been decided by parliament to maintain its independence from the government. Without a clear funding decision, Yle faces difficulties in budgeting and strategic planning. Additionally, concerns were raised that the government could influence Yle by threatening to tightening its funding. 

“A weak agreement would be better than the loss of parliamentary tradition” – YOT 

If the working groups were to reach an agreement on the funding of Yle, “it will certainly have an impact on the parliamentary work of the following government periods as well,” according to Wallinheimo.  

In reaction to the current deadlock, journalists and workers from Yle appealed to MPs to reach an agreement. “According to our understanding, the agreement on the Yle solution has already been very close. The content of the solution has been reported to the public, and this information is heavy for Yleisradio: index freezes and an increase in value added tax would hit Yle’s operations and staff with force. However, a weak agreement would be better than the loss of parliamentary tradition,” stated the petition.  

 YOT, the union of Yle’s workers emphasised the fact that decisions about the public broadcaster’s future were always decided “by crossing political borders” and should remain so.