12/12/2005

Making good use of the presence of all the film and audiovisual production players in the French regions, gathered for the Vendôme festival , the National Film Centre (CNC) announced an enlargement of the short film aid mechanism "1 euro for 2 euros" created in 2004. Based on the conventions signed three years ago by the State, the CNC and Regions, the system allowed the CNC to contribute to regional aid funds for film and audiovisual production to the tune of 1 euro for every 2 euros of aid from the Regions. This offer generated in 2004 funds from the CNC of around 10 million euros, which rose to 11,7 million euros in 2005 and reached 13 million euros in 2006. In total, 24 regions out of 26 have signed a convention (17 in 2004 and 7 more in 2005).

Also, as announced by Cineuropa on the 24th of October during the Beaune Meetings, an adaptation of the system tax credit in favour of authorized French film and audiovisual production is on the point of becoming concrete, in order to harmonize with EU regulations. Having greatly favoured the re-localisation of French location shooting, this tax mechanism launched in 2004 on the basis of a reduction of company income tax (equivalent to 20% of technical spend on production and post-production with a deduction ceiling of 1 million euros for a feature film) will become more selective and above all will include artistic costs. However, a limit may be fixed on expenses for actors so as not to penalise the whole system. Discussed in Brussels at the end of last week, these modifications must now be ratified by the professional organisations representing French film and audiovisual production. A text should be presented this week to the Senate.

(Translated from French)