A leading figure within the German media industry is calling on policymakers to provide substantive support for the nation’s press. Philipp Welte, a member of the Burda executive board, expressed concern over a perceived lack of engagement from political leaders regarding the future of reliable journalism.
In an interview with the Süddeutsche Zeitung, Welte emphasized the constitutional importance of a free press and voiced frustration that politicians appear more focused on digital platforms like TikTok and Instagram than addressing the challenges facing the sector. He argued that the industry’s stability is crucial for democratic stability.
Welte specifically advocated for a reduction of Value Added Tax (VAT) on press products to zero. He suggested that while this would represent a roughly €700 million reduction in state revenue, the impact would be minimal compared to other government initiatives and would provide the industry with crucial financial flexibility. This would enable continued investment in digitalization and maintain the high standards of journalistic output.
Highlighting the precarious position of publishers, Welte pointed to the dominance of powerful, often unpredictable, market monopolies, juxtaposed against the increasingly vital role of independent, reliable journalism in countering manipulation and disinformation prevalent on social media. He cautioned that failing to support this function could leave the country vulnerable to radical influences.
Regarding the media company Burda itself, Welte stated that the company has undergone a recent reorganization, resulting in a streamlined and clarified structure. While dismissing the possibility of private equity investment mirroring the model adopted by Axel Springer as a current priority, Welte did not exclude the prospect for specific business units within Burda as a potential growth strategy.