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Europe Daily Bulletin No. 9828
Contents Publication in full By article 15 / 27
GENERAL NEWS / (eu) eu/state aid

State aid rules on production of films and audiovisual works extended until 2012

Brussels, 28/01/2009 (Agence Europe) - On Wednesday 28 January, the European Commission adopted a communication extending the validity of the state aid assessment criteria for the production of films and audiovisual works until 31 December 2012. These criteria, laid down in a Commission communication of 2001, are used by the Commission to approve Europe's national, regional and local film support schemes under the EU's state aid rules. The new Commission communication also identifies a number of trends which are likely to have to be addressed by a future cinema communication. The more recent trends identified in today's communication include support for aspects other than film and TV production (such as film distribution and digital projection), more regional film support schemes, as well as competition among some member states to use state aid to attract inward investment from large-scale, mainly US, film production companies. These trends might lead in due course to a refinement of the state aid criteria. However, as these are complex issues, the Commission wishes to reflect on this with the member states, with film support bodies and with the European film industry. The Commission's 2001 Cinema Communication compatibility criteria are: 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 under the scheme as a result of territorial spending obligations; the aid intensity in principle must be limited to 50% of the production budget, except for difficult and low budget films; and aid supplements for specific film-making activities are not allowed. The validity of these criteria was due to expire on 31 December 2009 but following a public consultation on this matter, the Commission decided to extend the validity to 31 December 2012. (O.L./transl.rh)

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