In a much needed cost-saving exercise, Spain’s government has reduced substantially the state subsidy provided to national public audiovisual company Corporación RTVE.

The broadcaster will now receive €292.7 million, reducing the budget of the corporation in 2013 by €50 million. This will mean that since the conservative government came to power at the end of 2011 RTVE’s subsidy has fallen by €254 million.

The new edict from the government also contained an additional provision, the percentage of the rate of return on public radio reserve to be received by RTVE is et at 100%, to a maximum of €330 million and €74 million reserve to pay the costs of the debt accumulated by the RTVE public entity.

Even though the RTVE Financing Law eliminated advertising on the network, the government is now allowing the public broadcaster to earn income by providing services and the marketing of its contents, both self-produced and mixed production or co-production, if not from income activities advertising or teleshopping in any form. This includes sponsorship and advertising of products or exchange programmes.

The law allows the exchange sponsorships and advertising of sporting and cultural events, that fall within the public service mission of the Corporation, no commercial value and if they have this system as the only means of production and distribution.