After carrying an extensive study into the economic and cultural impact of territorial spending obligations imposed in film support schemes, the European Commission has decided to keep its present policy about the State aid assessment criteria until new rules on State aid to cinematographic and other audiovisual works come into effect, or, at the latest, until December 31st 2012.

The European Commission has published on February 7th 2009, its Communication concerning the State aid assessment criteria of the Commission communication on certain legal aspects relating to cinematographic and other audiovisual works (Cinema Communication) of September, 26th 2001.

This Communication follows the assessment carried out by the Commission in a study of the economic and cultural impact of territorial spending obligations imposed in film support schemes, which was launched in August 2004.

The results of the study published in May 2008, revealed the need for further reflection before proposing a modification of the existing State aid assessment criterion in the 2001 Cinema Communication.

Based on those results, the Commission considers that the current criteria can continue to promote cultural creation ensuring that the aid granted to film and audiovisual production does not affect competition and trading conditions to an extent contrary to the common interest, but it also underlines that the different cinematographic trends that have emerged since the 2001 will require some refinement of these criteria: support for aspects other than film and TV production like distribution of European films or digital production, as well as the support granted to regional films or issues related to competition to attract inward investment from large-scale, mainly US, film production companies are included in those trends.

The Commission has therefore decided to extend the validity of the state aid assessment criteria for the production of films and other audiovisual works at the latest until December 31st 2012, or until new rules on State aid to cinematographic and other audiovisual works come into effect. These criteria, laid down in 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.