Brussels extends funding regime on production
The European Commission adopted a communication today that extends the application of the current rules on state funding of film and audiovisual works until December 31, 2009. The communication on cinema confirms the rules established in 2001 and 2004, and is intended as an encouraging sign to the European industry.
The European Commissioner for Competition Neelie Kroes said: "Our objective is to ensure that the checks on state support continue to guarantee equal and optimal conditions for artistic and cultural creation in the Union’s film and audiovisual sector".
"The Commission’s decision of today, which closely follows the Television Without Frontiers directive, gives member states and investors the necessary legal certainty to continue investing in European films, television series and other audiovisual works," added Viviane Reding, European Commissioner for Information, Society and Media.
"The decision,” explained Reding, “provides all the interested parties with the plan for the definition of future rules, with the aim of improving the relationship between the challenge of promoting diversity and the need to reinforce the competitiveness of the audiovisual industry". The extension decided upon today signifies that the Commission will continue to apply current criteria in evaluating the compatibility of the funding schemes of the member states with the rules on state funding established in the Communication on Cinema in 2001 and extended in 2004 through June 2007.
The solutions from today until 2009 will have to take into account the results of an independent study on the economic and cultural impact of the existing requisites regarding “territorialisation”, a clause that in some countries obliges producers to spend part of a film’s budget in the state providing monies.
The Commission allows member states to impose this clause to up to 80% of a film’s overall budget, which means that producers are free to spend at least 20% of the budget outside of the country without being subjected to a reduction in funds. According to the Commission, the clause is justified by the need to safeguard talent. The preliminary results of the independent study will be examined in Brussels on July 2 while the final results will arrive at the end of 2007.
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