17/06/2008

New changes have been made to the film law drawn up in Hungary in 2004, which established a system of direct funding and tax incentives, promoting investment in film production.

After the amendments made at the start of 2006 and the green light from Europe for a period of two years (which drew to a close on December 31, 2007), the European Union demanded that Hungary modify the content of its law in order to harmonise with the other systems that currently exist in Europe and thus avoid unfair competition between the different territories.

Ratified last week by members of the Hungarian parliament, the new version of the law defines more clearly the cultural criteria necessary for obtaining public funding. On a scale of 32 points, 16 is the minimum for eligibility for financial support from public sources.

Points will be awarded if the film’s screenplay deals with a subject related to European or Hungarian culture, depicts European customs and lifestyles, expresses European values, is adapted from European literary works or if the filmmakers are citizens of the European economic zone, or have won awards at international festivals.

The new version of the Hungarian law states that 20% of public subsidies will be earmarked for productions from other members of the European Union.

A maximum of 50% of the budget of a domestic film and 50% of the Hungarian investment in the case of co-productions will be covered by direct and indirect funding from the Hungarian State, with a budget ceiling of €1.87m. The only exceptions are low-budget domestic films (maximum €950,000) which may receive up to 90% funding.

(Translated from French)