film news

European Commission proposes changes to film subsidies

film subsidies

The amount of government aid granted to foreign film producers is to be cut with the aim of increasing competiveness based on quality and not on the quantity of financial help available.

The new parameters proposed on Wednesday 14th March aim to persuade film producers  to base their choice of country on what is offered. This way, advantages regarding the labor force, technology and surroundings will become more important.

The new parameters are:

–        Budgets below €10 million ($13 million) = 50%

–        Budgets between €10 million and €10 million ($13 million and $26 million) = 30%

–        Budgets above €20 million ($26 million = 10%)

Other prepositions include modifying regional requirements allowing the accumulation of aid from different geographical areas. Moreover, governments will be limited to recovering their investment and will not be allowed to make a profit.

Often the advantage of permitting the production of foreign films is reflected in the local area. Productions must benefit the community and frequently this is decisive when accepting or not the filmic proposition.

Joaquín Almunia, Commission Vice President commented

Today´s draft Communication aims to provide a workable instrument which is beneficial for the entire European audiovisual sector and for the European audiences.

With the aim of developing the European film scene, the new boundaries will replace rules in place since 2001. Nonetheless, despite this intention, it seems that not even the audiovisual industry can escape the current economic crisis.

subscribe