10/01/2011

In accordance with the European Union’s rules on state aid, the European Commission (EC) has authorised a €80.68m (347m RON) funding scheme for the Romanian film sector, to support development of the film industry, culture and education. The Commission concluded that the measure complied with its Cinema Communication (IP/09/138) because it promotes a cultural objective without unduly distorting competition.

The Commission has greenlighted a Romanian funding scheme allocating interest-free loans or non-reimbursable grants for the production of Romanian films or films made with Romanian backing. This scheme joins other cases previously approved under EU rules that authorise state subsidies for cultural objectives, and it is in line with the state aid evaluation criteria set out in the Commission’s Cinema Communication.

In particular, the Commission judged that the cultural criteria defined by the Romanian authorities would direct the funding towards cultural products. Moreover, the measure allows producers to spend up to 20% of the film’s budget within the European Economic Area (EEA), not just in Romania.

The Romanian authorities plan to apply this scheme until December 31, 2014.