Public consultation launched to assess member states' support schemes for films and other audiovisual works
The European Commission published the third and final public consultation in its review of the state aid criteria it uses to assess member states' support schemes for films and other audiovisual works. In particular, the Commission consults on the criteria set out in a draft Communication. Contributions to this consultation can be made until the 28 May 2013.
The European Commission launched a public consultation in its review of the state aid criteria it uses to assess member states' support schemes for films and other audiovisual works. The revised draft Communication is intended to create a level playing field between member states and to encourage cross-border productions, taking advantage of the internal market rules. The criteria are set out in this draft Communication, on which the Commission invites comments by 28 May 2013. The final Communication is due to be adopted by the Commission in July 2013. In July 2011, the Commission opened a public consultation on the audiovisual works in a digital single market.
The Commission proposes to continue allowing member states to impose territorial spending obligations up to 80% of the overall production budget. However, restrictions on the origin of goods and services, which are incompatible with the basic principles of the EU Single Market, would be clearly prohibited. Compared to the previous rules adopted in 2001, the new draft ensures proportionality of territorial obligations with the aid granted and takes into account the specific characteristics of tax incentives.
The State aid assessment criteria which have been applied since 2001 expired on 31 December 2012. Member states provide an estimated €3 billion per year in film support: €2 billion in grants and soft loans, as well as €1 billion in tax incentives. Around 80% of this is for film production. France, the UK, Germany, Italy and Spain offer the majority of this financial support.