Brussels, 13/11/2013 (Agence Europe) - This Thursday, 14 November, the European Commission is to present its communication on the revised rules applicable to state aid to the cinematographic industry to replace the mechanism set in place in 2001 and still in force, despite its expiry in December of last year.
As distinct from the 2001 rules, which covered only aid to production, this new framework includes assistance to all stages of a cinematographic work, from its conception to its public distribution (scenario, development, distribution, promotion), with the stated objective of “promoting cultural diversity and authentically European cinema”. In its original draft, which was presented for consultation purposes to the parties concerned in April of this year, the Commission wished to get rid of “all restrictions on the origin of goods and services”, in order to put all companies involved in the making of a film (lighting, filming, costumes etc) on the same footing, irrespective of their member state of origin. It has had to take a step backwards, due to opposition to this clause from a number of member states (particularly France), as they would no longer have been able to grant the national technical industry the benefit of tax cuts or other forms of aid.
Another point which came under fire was the Commission's desire to limit the “localisation” of expenditure provided for by the 2001 rules, in other words the possibility for the state paying aid to insist that up to 80% of the overall production budget of the film be spent nationally, using local subcontractors and suppliers. Under its revised rules, the Commission is cutting the link with the overall production budget and limiting the share of localised expenditure to 160% of state aid actually paid out, taking the view that the earlier criterion is excessive and penalised non-national companies. However, in order for the film to be able to receive aid, the member states may insist, without using criteria based on the origin of goods, services or workers, that a proportion of the production activity not exceeding 50% of the total production budget be carried out on their soil and that the localisation share can be up to 80% of this budget for films receiving the most assistance. (FG/transl.fl)