France: The sacking of Serge July, the editor of the French daily newspaper Libération, marks a turning point in the history of French journalism. It is also seen as a test case for editorial independence and the viability of print media in France.
"If my departure can contribute to the refinancing of the newspaper (by its main shareholder, Edouard de Rothschild), I will not stand in the way," July (63) told staff this week.
Mr Rothschild invested €20 million in Libération last year, most of which "went up in smoke", in the words of one of the paper's star correspondents.
July is asking Mr Rothschild to invest another €15 million in exchange for his departure, which should be finalised at a board meeting on Saturday.
As July's lawyers were negotiating his severance pay, the newspaper's journalists yesterday published a front-page declaration of support for their editor, who founded the left-wing daily with Jean-Paul Sartre in 1973.
"For 33 years, Serge July has been the guarantor of our editorial independence," the statement began. "Libération has retained and must retain its freedom of expression." Referring to Mr Rothschild, the journalists continued: "It is not the role of any shareholder to decide on editorial content or contributors."
Founded in the wake of the May 1968 revolution, "Libé" was initially a Maoist newspaper, which slowly came round to accepting advertising and hiring professional journalists. By the end of the 1970s, it had become extremely fashionable, selling 200,000 copies per day.
Through the 1980s, the paper chronicled the evolution of the French left, accepting capitalism and the bourse while campaigning for the rights of homosexuals and deregulation of television and radio stations. Paid circulation dropped to 160,605 copies in 1996 and 136,945 last year.
The internet and free newspapers hastened Libération's decline, but staff also fault poor management by July and his cavalier treatment of Rothschild.
Before he was sacked, July was seeking new investment and Rothschild apparently feared his share would be diluted.
The newspaper's journalists, who own 18.45 per cent of shares, voted to accept Rothschild's purchase of 38.3 per cent in April 2005. One argument which July used to convince them was a promise by Rothschild to keep him as editor until 2012.
Libération lost €14.5 million last year, about half in compensation for 55 journalists who were fired or resigned. Sales continue to fall, and the paper has lost another €4.5 million this year.
A correspondent described the mood in the rue Béranger: "It's shock, and real fear before the unknown. We're peering into the void," he said.
July says the paper is not broke, but needs long-term financing. Mr Rothschild told Le Parisien newspaper that Libération "is very close to bankruptcy".
The sacking of July was prompted by a combination of anger over mounting losses and the way July excluded him from goings-on at the paper.
"July wouldn't even let Rothschild visit the offices; he'd say 'not before you sign the cheque'," said a source on the paper. "Now Rothschild is humiliating him. He's called Serge a bloodsucker and says he's not giving him a sou." July is demanding €500,000 in indemnities.
"Citizen July," as Le Figaro calls him, is the author of several bestsellers and a frequent participant in French radio and television programmes.
A father figure on the newspaper, he was greatly admired for travelling to Baghdad when one of his reporters, Florence Aubenas, was kidnapped last year. "He always protected his journalists," a correspondent said. "No one will protect us in the future."
Libération's difficulties are symptomatic of the broader crisis in French print media. The tabloid France Soir and the communist newspaper L'Humanité are also struggling to survive.
Le Figaro found salvation in the arms of Serge Dassault, one of the country's leading weapons manufacturers.
Advertising revenue in national newspapers has dropped 45 per cent in five years, with much of the money diverted to the free newspapers 20 Minutes and Metro.
20 Minutes is now the most widely read national newspaper, with a circulation of 661,675.
The average French newspaper reader spends 30 minutes a day reading, but three hours and 23 minutes watching television.