RTVE asks SEPI to activate reserve fund to cover 34 million euro losses

RTVE asks the State to tap the reserve fund to cover 34 million euro losses

José Pablo López, president of Radio Televisión Española, appeared before Congress to review his first months in charge and delivered an uncomfortable headline: the corporation will close 2024 with accounting losses of approximately 34 million euros, a figure that remains fluid as the final balance is not yet closed. The proposed solution is hardly austere: activating a 38.3 million euro reserve fund held by SEPI (Spain's State Participation Agency) to plug the gap. In other words, public money to cover a shortfall that, excluding property depreciation, would stand at around -26 million euros.

Debt is also a cause for concern. Pending confirmation of the year-end figures, the corporation is expected to close with a liability of -430 million euros. If it uses the entire reserve fund, it will be left with only seven million euros in liquidity to continue managing what the president himself describes as a delicate situation.

Cuts at the top: from the president's salary to 20% for executives

The announcement of these cuts comes with specific names and figures. López will reduce his own salary, moving from 240,000 euros to approximately 170,000 euros fixed plus 30,000 euros variable, provided he meets the budgets approved by the board of directors. For other executives, he proposes a 20% pay cut, a measure already approved. In two months, he has reduced management positions by 15%: from 31 to 24 directorates, from 56 to 46 area directorates, and from 109 to 99 sub-directorates.

Personnel costs are another open front. According to the provisional income statement, RTVE will spend approximately 490 million euros, 27 million euros more than the previous year. There will be limits on travel, allowances, and expenses, with mandatory justification and a 7% reduction in the budgeted amount. The corporation will also meet with production companies to try to lower programming costs: "We must make better use of the content structure," he said.

The reserve fund: what it is and why it is being tapped

The reserve fund is the mechanism RTVE holds with SEPI, the state investment arm overseeing the public corporation, to cover unexpected shortfalls. The available amount, 38.3 million euros, barely covers the anticipated accounting losses. If fully activated, the corporation will be left with seven million euros in liquidity. The paradox lies in a public service entity closing the year by asking its shareholder to cover the deficit while announcing cuts that primarily affect top management.

Broncano, Ichaurrondo, and the cost of programming

Part of the ongoing analysis points to spending on content as the main source of overspending. A 28 million euro contract for two seasons for the Broncano program is cited, contrasted with the 34 million euro loss: some argue the deficit is almost equivalent to the cost of the flagship show. Others defend that the program moved La 2 from third to second place in ratings, although the channel continues to struggle below 800,000 viewers. The debate over whether production spending is investment or waste remains open.

The underlying debate: public service or political tool?

Beyond the figures, the conversation shifts to the model itself. Some call for closing the public television, others propose converting it into a pay channel, and many recall that the budget is around one billion euros. Comparisons with the monarchy (8 million euros) or with Correos (the postal service) are common rhetorical devices. The analysis consistently stalls on the same point: whether the problem is management, the model, or simply who pays for the party.