Brussels, 16/03/2004 (Agence Europe) - On Wednesday, the European Commission adopted a new communication on State aid to European cinema, which extended the previous regime for three years. The Commission will take advantage of the entry into force of the new communication to carry out a study into the economic and cultural impact of the current regime, to see whether this fully responds to the future challenges for the European audiovisual market, of whether changes will have to be made when it is next revised, on 30 June 2007. The Commission is also proposing the adoption of a recommendation on cinematographic heritage.
Adopted on the proposal of Commissioner for Culture, Viviane Reding and by agreement of Commissioner for State Aid Mario Monti, the communication authorises the granting of State aid to European cinema under certain conditions. It is the results of several months of consultation with national and regional authorities and professional circles (over 150 organisations took part), most of whom spoke in favour of extending the current regime. There was "almost total support for the 2001 communication", said Ms Reding, who also vigorously denied that the Commission intends to question aid to the sector. "The profession asked for the communication not to be called into question, in order not to threaten the stability of the sector, and no complaints have been introduced until now", she stressed. The conditions of the 2001 communication on national support regimes are thus continued: initially, it will have to be verified that conditions of access to the regime do not run counter to the general principles of legality (for instance, in terms of discrimination on the grounds of nationality), and then, that the specific criteria for cinema and television aid are fulfilled.
In the meantime, the Commission will carry out an inquiry to lay the first foundation stones of the 2007 communication. It will look into the controversial issue of "territorialisation" required by certain Member States (France and Germany apply it, whereas the United Kingdom and the Netherlands are to abandon it, said Ms Reding) has caused a fragmentation of the European audiovisual market by hindering European co-productions. It is worth noting that a State which applies the "territoriality" clause obliges producers to spend 80% of the budget allocated to them on its territory.
The Commission is also to propose a recommendation to focus solely on cinematographic works, and which will cover all the planks of the protection of cinematographic heritage: catalogue of works, creation of databases, film restoration and the use of films in teaching, co-operation between institutions in charge of the sector. Ms Reding stressed the importance of ensuring the sustainable protection of the media of cinematographic works, which have a limited shelf-life (silent films are on the point of disappearance) because "it would be irresponsible to lose part of our diversity". Four-fifths of the Member States of the EU have an obligatory storage system for all cinematographic works, added the Commissioner, who feels that synergy between the various systems must be sought.
Lastly, Ms Reding announced that the forthcoming Cannes Film Festival would devote a day (18 May) to European cinema, when the Culture Ministers of the 25 and representatives of the main European cinema schools will discuss the teaching of cinema in Europe, and student mobility in this field.
The Association of Film and Television Producers, Eurocinema, welcomes decision
In a press release, the association Eurocinema "welcomes with satisfaction the decision taken this day by the Commission to extend the specific criteria of compatibility for State Aid to cinema and TV programme production". However, it intends to remain "particularly watchful" of the modalities of the study the Commission plans to launch.