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Radio RBB Facees Budget Cuts: Determining the Amount to Save

Amidst continued turmoil since the RBB scandal in 2022, the public broadcasting corporation finds itself in an ongoing state of crisis. As positions are eliminated, hefty severance deals are granted to former executives.

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In the aftermath of the RBB scandal in 2022, the public broadcaster has been grappling with ongoing...
In the aftermath of the RBB scandal in 2022, the public broadcaster has been grappling with ongoing turmoil. Staff reductions are on the rise, while former management receives sizable termination benefits.

Radio RBB Facees Budget Cuts: Determining the Amount to Save

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Stepping into the limelight, Rundfunk Berlin-Brandenburg (RBB) revealed a breathtaking surge in profits over the past year. Originally planning for a revenue of 526.4 million euros, they ended up with a whopping 545.7 million – a striking increase of 19.3 million euros. On the expenses side, they managed to shave off 26.1 million euros, ending up with a profit of 49.3 million euros – a significant leap from the 27.5 million euros in 2023. Contrastingly, in 2020, RBB was grappling with a loss of 20.4 million euros.

This eyebrow-raising shift in finances was unearthed through a written inquiry by Member of Parliament Anne Helm (Left Party) to the Berlin Senate Chancellery. The Senate Chancellery, in turn, had requested clarification from RBB. With the newly discovered extra cash, Helm started questioning the need for announced savings measures such as the reduction of 254 positions, particularly the prospect of discontinuing popular shows such as "Ohrenbaer."

"The planned massive cuts to the program and the reduction of ten percent of positions are detrimental to the substance," expressed Helm.

Previous to this, the service union Verdi had also demanded a review of the personnel reduction and cuts to the program. "RBB is swimming in cash, yet insists on savings of 22 million euros and the reduction plan for 254 permanent and freelance positions," criticized the regional chairwoman Andrea Kuhnemann. Furthermore, she voiced her concern over the management's intention to trim training, while around 600 employees are approaching retirement age by 2030.

The Senate Chancellery, nonetheless, remains concerned about RBB's financial situation, indicating a need for immediate and short-term savings in the previous two years due to an impending medium-term liquidity decline, which required intervention. They state, "The expected additional revenues do not fundamentally change the situation of RBB." Essential structural changes are required, they maintain.

As the dust settles on the dismissed director Patricia Schlesinger's case, it remains unclear whether she will receive a lifelong pension of 18,300 euros per month retroactively from January 2023. Despite their disagreement, RBB does not wish to reach a settlement with Schlesinger. The Berlin Regional Court will deliver a verdict on July 4, having previously suggested a friendly agreement in January.

Apart from the much-talked-about severance pay for the now 63-year-old Schlesinger, it seems that similar payments were agreed upon in the contracts of other dismissed executives. The question of morality and the potential invalidity of such payments lies with the courts – those who have already dealt with multiple cases of a similar nature in 2024 alone. RBB's severance payments for that year totaled 2.6 million euros, with legal fees adding up to 818,000 euros due to disputes over severance payments and damage claims.**

The dire financial situation of RBB has not gone unnoticed by the Senate Chancellery, which is mindful of the risks associated with inflation, interest rate fluctuations, and potential price increases. To offset the expected nine million euros annual funding gap from 2026, the Senate Chancellery, in collaboration with the Potsdam State Chancellery, is taking steps to close that gap. According to Senate Chancellery head Florian Graf (CDU), "The future will depend significantly on the consistent implementation of the agreed and announced austerity measures. All savings and optimization options must be utilized."

  1. The unexpected surge in Rundfunk Berlin-Brandenburg's (RBB) profits has sparked discussions in the realm of business, politics, and general-news, as questions arise about announced cost-saving measures and the potential discontinuation of popular shows, in light of the substantial profit of 49.3 million euros.
  2. The Senator, Anne Helm (Left Party), has raised concerns about the need for savings measures such as the reduction of 254 positions, as she questions the necessity of such cuts given the revealed increase in RBB's finances. This debate, delving into the intersection of finance, business, and politics, creates a complex narrative that calls for careful consideration and informed decision-making.

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