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Development of the act for financing the Corporación RTVE

30/07/2010
Reference Council of Ministers

The Council of Ministers has approved, through a Royal Decree, the regulations which develop the 2009 Act for Financing Corporación RTVE. These regulations meets the mandate, set in the Act itself, to develop and specify some of the issues included in the Act, basically of a procedural character, for the effective application of the new model for financing the state-owned radio and television.

This model, among other things, sets a yearly budgetary ceiling of 1,200 Million Euros and eliminates the advertisements as a way for financing RTVE. Equally, it forbids the pay-per-view systems, turning the new Corporación into a free and universal-access public service.

Two financial sources

Since this year 2010, financing will be based, on the one hand, on the public income from the State Budget and the income generated by the Reserve Charge for the Radio Electrical Domain, and on the other, on the contributions made by the television and telecommunications operators on the basis of their gross yearly turnover, according to the terms and conditions and within the limits set by the Act itself.

These contributions, both from the State and from the private operators, can only be applied to financing public service contents.

One year after the Act for Financing Corporación RTVE was passed, the Government has approved the regulations which develop it, once the European Commission has stated that the new financing system meets Community law, and especially, the Union Treaty regarding state aid.

With the positive statement from the European Commission, there is no longer any obstacle for the application in full of the financing system. For this to happen, it is required to develop some issues, basically of a technical nature, which allow its effective application. This is the goal of the Royal Decree which has been approved today by the Council of Ministers.

Main features

Generally speaking, these Regulations set the procedures, criteria and mechanisms envisaged for:

The Royal Decree, which constitutes a necessary and required step forward in the reform of the audiovisual industry which is being carried out by the Government, meets the functions, common to all Regulations, of developing, clarifying and completing the Act stipulations. It is a necessary function for the application of a new financing model for the Corporación, whose results are now becoming visible, both in terms of audience and financial stability for Televisión Española, as well as for giving new impetus to the audiovisual industry.

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