Brussels, 13/06/2007 (Agence Europe) - On Wednesday 13 June, the European Commission adopted a communication extending the raft of rules in force on state aid to film and other audiovisual works until no later than 31 December 2009. In order to ensure compatibility of aid, aside from the principle of “general legality”, these rules list four additional specific criteria: - the aid must benefit a cultural product; - the producer must be free to spend at least 20% of the production budget in other member states without suffering any reduction in the aid provided for under the scheme (so-called 'territorialisation clause'); - the aid intensity in principle must be limited to 50% of the production budget, not counting exceptions; - aid supplements for specific film-making activities are not allowed. The communication thus extends the rules laid down in the previous communications of 2001 and 2004, which are set to expire at the end of June 2007.
As for developments likely for the end of 2009, an independent study into the economic and cultural impact of the so-called “territorialisation” conditions, particularly with respect to co-productions, is under way. The preliminary conclusions will be presented at a workshop to be held in Brussels on 6 July. The final results are expected for the end of 2007. (gc)