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FUNDING Italy

Finance for cinema: new management

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A new way of providing public funding for Italian films. That is the aim of the bill proposed by Gabriella Carlucci, head of Forza Italia’s Entertainment Office, and her Alleanza Nazionale counterpart and colleague, Guglielmo Rositani.
Their bill will only be discussed when Parliament re-opens for business in September, but the two authors have already made their thoughts on how the funds that the Ministry for Culture manages on behalf of and distributes to the Italian film industry most clearly. The novelty is represented by a publicly company called the Institute for Film Development, responsible for supplying 45% of the total cost of a given film, with the burden of raising the remaining 55% lying squarely on the producers’ shoulders. The criteria according to which films will be eligible for state funding are based on the producer-in-question’s CV and the box office performance of his previous productions. He or she will receive a producer’s fee amounting to 10% of the budget. In plain terms, a producer who managed to pull together a recent box office blockbuster will be eligible for new funding for his or her next project. Nevertheless approval is subject to a careful examination of the quality and artistic value of the new film. Following a similar review, first-time films or directorial debuts will also be guaranteed a fixed amount of money.
The real novelty lies in the introduction of authentic tax shelters, or fiscal sweeteners. This means that investments made in film productions will be subject to cuts even tax-free and opens the Italian market up to European co-productions, and will encourage new film schools with students from all over the Continent.
The Carlucci-Rositano bill also calls for:
- ulterior incentives for exhibitors to screen Italian and European films;
- a tightening up in the battle against black market piracy;
- closer controls on TV networks to ensure they dedicated at least 40% of their air time to Italian and European productions and the introduction of an American-style system of self-censorship.

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