MADRID (AA) - Autonomous government in the east part of Spain has decided to close down a 24-year-old TV company, RTVV.
Citing 72 million Euro expenses for nearly 1,700 workers and 1,126 billion Euro debt of the company as the reasons, autonomous government of Valencia said in a statement It was impossible for them to employ 1,000 workers in RTVV.
"In the current situation we have to use these expenses for health, education and social services,” the statement added.
Crisis in Spain, autonomous governments’ cutting budgets for savings, and decreases in advertising revenues have created economic problems in local media companies.
The autonomous government of Catalonia has decided to reduce its budget of 278 million Euros allocated to local media in 2007 to 225 million Euros in 2013, and also Basque autonomous government has decided to decrease its budget of 127,600 million Euros allocated to local media to 105,100 million Euros.
Telemadrid, a local media company in Spain, laid off its 861 workers and its decision to dismiss other 300 workers in the future has created dispute.
