Greece Closes state Broadcasting Company Due to Austerity

Athens, Greece, June 13, 2013 — The Greek government announced on Wednesday it was replacing Hellenic Broadcasting Corp. with New Hellenic Radio, Internet and Television, shortened to NERIT, which is expected to launch in August.

The Greek government unveiled its plans to open a slimmed down version of the state broadcaster just hours after taking the draconian step of shutting Hellenic Broadcasting Corp. or ERT.

On Tuesday, the conservative-led government announced the closure of Hellenic Broadcasting Corp., or ERT and was laying off 2,656 workers as part of a cost-cutting drive demanded by the bailed-out country's international creditors.

The government admitted ERT was going to cease operating under its present model, under guidance from the Greek government, because of serious financial pressure.

Government spokesperson Simos Kedikoglou said that the organization would cease operations by the early hours of 12 June after the end of the day's programming. Kedikoglou said confirmation of how the closure will affect the public broadcasters' television and radio services will be announced in the coming days.

Despite the announcement, ERT employees returned to work. After ERT transmitters and its website were shut down, broadcasts continued through a satellite wild feed with European Broadcasting Union equipment. The EBU also began providing Internet streaming of the ERT broadcast.

Newscaster Antonis Alafogiorgos gave sarcastic remarks during his last live broadcast. "Congratulations to the Greek government," he said toward the end of ERT's main TV live broadcast. "This is a blow to democracy," he added, as thousands of media workers and supporters protested the closure outside the company's headquarters in Athens.

Although widely expected, the move still came as a surprise as it ushered the first direct public sector layoffs in more than three years of painful austerity, which have already cost nearly 1 million private sector jobs. The announcement also widened cracks in the year-old governing coalition, with both minority partners condemning the corporation's suspension, while international journalists' associations expressed dismay.

ERT TV and radio stopped broadcasting in several parts of the country around 11 p.m. Tuesday, about an hour before the government said all signals would go dead, although satellite broadcasts continued.

A Finance Ministry statement said ERT has been formally disbanded, and authorities would "secure" the corporation's facilities. Riot police deployed outside ERT buildings in several parts of Greece, but no clashes were reported.

Government spokesman Kedikoglou, himself a former state TV journalist, described ERT as a "haven of waste" and said its employees will be compensated.

"ERT is a typical example of a unique lack of transparency and incredible waste. And that ends today," Kedikoglou said. "It costs three to seven times as much as other TV stations and four to six times the personnel – for a very small viewership, about half that of an average private station."