Commission adopts Communication on state aid for cinema

On 14 November, the European Commission will adopt a new Communication on state aid for films and other audiovisual works.

The Communication contains detailed criteria that define how member states may financially support the production and distribution of films in line with EU state aid rules. It replaces the criteria which have been applied since 2001 and amends them.

The aim of the Communication is to encourage creation and cultural diversity everywhere in the European Union and to set the conditions for a successful European audiovisual sector, where cross-border productions can be set up easily.

Background

Member states provide an estimated €3 billion per year in film support: €2bn in grants and soft loans, as well as €1bn in tax incentives. Around 80% of this is for film production.

Financial support is important to ensure a continued and meaningful European film production. In 2001, the Commission published for the first time rules on the application of the state aid rules to aid for film production (the Cinema Communication). These rules expired at the end of 2012.

Therefore, the Commission started a review process in 2011, which led to three public consultations of member states and stakeholders.

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