In a landmark decision, the German Federal Cabinet has approved the draft of the 2026 federal cultural budget, which nearly doubles the funding for the German Federal Film Fund (DFFF) and the German Motion Picture Fund (GMPF) to €250 million annually. Including additional resources for jury-based cultural film funding and allocations via the German Federal Film Board (FFA), the total amount of federal support will rise to approximately €310 million per year, supplemented by the Federal States’ regional funding schemes.

The new funding level is set to continue beyond 2026 and is paired with the 30% rebate on eligible German production costs introduced earlier this year. Together, they establish a competitive incentive programme aimed at providing long-term planning security for both domestic and international producers investing in Germany, while also aiming to attract more productions to the country and strengthen German-based companies in the international market.

At the same time, Minister of State for Media Wolfram Weimer will initiate the interdepartmental coordination process for a draft bill introducing an investment obligation for streaming platforms operating in the country. A broad consultation with industry stakeholders is planned in the coming weeks to shape the framework, with the law still in an early preparatory phase.

“We need more blockbusters and series hits made in Germany. This reform is the soundtrack to a new beginning,” said Weimer, calling the decision a “breakthrough”. “The film funding programmes are now equipped to be internationally competitive. At the same time, we are complementing this major increase in funding with an investment obligation for media service providers. We know the industry and the Federal States stand by us in this major operation to strengthen Germany as a film location, and we thank all those involved for their constructive cooperation.”

Weimer also highlighted the close collaboration with Finance Minister Lars Klingbeil in making the reform possible: “Together, we have managed to quickly remove the paralysing bottleneck in German film funding. The film industry can now plan reliably and produce more in Germany.”

Klingbeil added: “Germany has an outstanding film scene. We want to be a top location for internationally successful films and series. This is why we are strengthening film production in Germany with higher funding, combined with incentives for producers, and an investment obligation for media service providers.” He stressed that the move has both cultural and economic significance, calling film funding “money well invested in culture and Germany’s creative economy”.

With this decision, the federal government formally completes the reform process of the German film support system initiated in the previous legislative period. The overhaul is built on four pillars: the revised Film Funding Act (FFG), jury-based cultural film funding, the new incentive programme and the forthcoming investment obligation. Together, they aim to relaunch the German audiovisual sector at a level that is competitive on the international stage. At the same time, the government’s reference to the reform’s “completion” may suggest that plans for implementing a tax incentive model are currently on hold, leaving room for possible further developments in the future.