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FINANCE France

Green light for aid system

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Very good news came from Brussels yesterday, where the European Commission officially authorised, until 2011, French aid mechanisms in favour of the cinema and the audiovisual industry, a system cited as a model for a number of other European countries. Although the aid is almost all public money, the Commission proved its flexibility, estimating that it "encourages cultural development without affecting trading conditions between member States to an extent contrary to the common interest".

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In exchange for this approval, France accepted modification to this system, which Brussels would like to implement in June of 2007 for the rules of European film aid, notably the link between production and the "territorialisation" of filming and of post-production. The Commission, in fact, intends to lower the 80% benchmark for films made in a country, which can currently be requested in exchange for national production aid.

The green light from Brussels was greeted with satisfaction by French Cultural Minister Renaud Donnedieu de Vabres, for whom "it was an essential decision for European cinema, which cannot survive without these dynamic, creative, open local film industries, encouraged by consistent and strong national policies". Professional organisations such as the ARP (Civil Society of Authors, Directors and Producers) and the SACD (Authors and Composers Guild) are in step with him.

With the allocation of approximately €495m by the National Film Centre (CNC) to the film and audiovisual industry in 2006, the French system allowed cinema to maintain a high level of production (240 features in 2005), offer a credible alternative to US films (French films enjoyed a 37% market share at home last year), as well to invest in international co-productions (114 in 2005), especially European films.

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(Translated from French)

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