Saturday, November 16, 2024

Brussels Edition: A media brawl

Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join u

Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

MADRID — As Spain awoke on the morning of Oct. 30 to the news of devastating flash floods and deaths in Valencia, lawmakers in the capital swiftly suspended their weekly plenary session, citing respect for victims.

After the main session was called off, lawmakers of the ruling Socialist party and several allied groups still gathered to approve a change in rules governing the board of RTVE, the public radio and TV corporation.

Flood debris in Paiporta, Spain. Photographer: Angel Garcia/Bloomberg

The new structure gives several smaller parties seats on the body — and dilutes the power of the main opposition group. 

Control of RTVE has always been controversial. When Prime Minister Pedro Sanchez's Socialists have been in opposition they always accused the People's Party of trying to control the corporation. And when the Socialists are governing, the PP says the same. 

For years, board appointments required the support of two-thirds of parliament, and the two parties would do some parliamentary horse-trading to reach an agreement. 

This was relatively straightforward until 2015, when Spain's two-party system crumbled, allowing smaller parties to gain force, which made it harder to strike deals.

Politics became much more divisive — Spain ranked as one of the six most polarized countries in a report published in 2023 by the Edelman consulting group.

Recent tensions have been so high between the two parties that when they tried to reach a deal to name a new central bank governor earlier this year, one condition the PP floated was that RTVE remove a star presenter from its main news show because they consider her pro-government. In the end, the government picked a central governor without the PP's support.

The RTVE headquarters in Madrid. Photographer: Ricardo Rubio/Getty Images

Sánchez has been struggling to get anything through parliament since an inconclusive election last year left him atop a minority government with a fragmented parliament. He was unable to pass a budget for 2024 and hadn't been able to get one through for 2025 yet.

Now, the PP, the largest party in the country, says the recent move shows that Sanchez is trying to take over RTVE.

They point to the election to the new board of the justice minister's head of communications as a prime example. Sanchez, in turn, says the PP simply wants to block all government initiatives. 

Meanwhile, to everybody's surprise, a new late night-style show is turning out to be a huge success for the state broadcaster.

La Revuelta, or the Uprising, hosted by a popular comedian, has boosted viewership in a slot that tended to be dominated by a private broadcaster, suggesting audiences aren't fazed by the political wrangling. 

Rodrigo Orihuela, Madrid bureau chief

Weekend Reads

How Italy Swayed Tycoons to Pile Into Master Plan for Paschi 

A little over a week ago, Italian Finance Minister Giancarlo Giorgetti approached some of the country's wealthiest investors to finally pull off what his predecessors failed to do: Return Banca Monte dei Paschi di Siena to private ownership while keeping it Italian.

Fight Over Europe's Biggest Lithium Mine Gets Geopolitical

A warning sign outside a partially demolished house purchased by Rio Tinto as part of a lithium mine project in Gornje Nedeljice. Photographer: Oliver Bunic/Bloomberg

The  €2.55 billion project is Serbia's most controversial investment since the fall of Slobodan Milosevic 24 years ago. President Aleksandar Vucic sees the mine as key to burnishing Serbia's EU credentials and he's hoping for a boost from Donald Trump. But opposition parties and environmental groups say the pollution will destroy the area.

As War Grinds On, Ukrainians Donate Less to Their Military

In 2022, donations to a charity run by Ukrainian TV celebrity Serhiy Prytula were so abundant that it could buy a satellite for defense ministry. But this year he sees the opposite trend: Ukrainians have become thriftier in financing the military effort, reflecting rising economic challenges and war fatigue — just as Donald Trump prepares to return to the White House.

Northvolt's Champions in No Rush to Save Swedish Battery Firm

When Northvolt's clean-energy star was on the rise, Sweden's political class took every opportunity to bask in its glow. But since Northvolt's troubles began trickling out to the public this past summer, Swedish officials have tempered their enthusiasm, repeatedly assuring constituents that the government won't spend taxpayer funds to rescue the cash-strapped company.

'Bitcoin Jesus' Fights IRS Tax Evasion Case From Spanish Island

To his followers, Roger Ver is known as Bitcoin Jesus, a charismatic advocate of a cryptocurrency with record-breaking gains. But to the US Internal Revenue Service, Ver is a crypto holder suspected of failing to pay taxes after selling tokens. Ver is now awaiting a Spanish judge's decision on whether he must be extradited after his April arrest in Barcelona while attending a crypto conference.

This Week in Europe

  • Monday: EU foreign ministers meet in Brussels
  • Monday-Tuesday: European leaders attend G-20 meeting in Rio de Janeiro
  • Tuesday: EU defense ministers meet in Brussels
  • Thursday: EU trade ministers in Brussels
  • Friday: ECB President Christine Lagarde and Governing Council members Joachim Nagel, Francois Villeroy de Galhau speak at European Banking Congress in Frankfurt

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