French government provisions for telecom tax ruling

The French government has made a budget provision of €1.3 billion pending a final ruling on the tax imposed on telecom service providers to support public broadcaster France Télévisions following the suppression of TV after 20:00 on its channels.

The EC last year censured France and Spain for their refusal to abolish the tax, which levies 0.9% of the revenues of telecom companies above €5 million.

According to French financial daily Les Echos, the French government is set to slash France Télévisions’ budget by €85 million, or 3.4%, next year.