Brussels, 08/05/2012 (Agence Europe) - The European Commission has demanded that €265 million of public funding, granted by the Valencia Regional Government to the Ciudad de la Luz film studio, be paid back by the beneficiary. In 2008, following various complaints, the Commission started an in-depth investigation into the financing made by the Valencia Regional Government in 2000, which included the construction, management and operation of audiovisual and cinematographic facilities. The investigation concluded that the funding seriously undermined competition between the big European film studios. The Commission concluded that a market investor would not have provided 100% funding for the project (where there is already oversupply) which has so far failed to make any profit. Spain has not demonstrated that the benefits of the project for regional development outweigh the distortions of competition brought about by the large amount of public funding. (FG/transl.fl)