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Public Funding for Film and Audiovisual Works in Europe – a Comparative Approach

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Public Funding for Film and Audiovisual Works in Europe – a Comparative Approach __ // g Public funding for film and audiovisual works in Europe – A comparative approach This report from the European Audiovisual Observatory, compiled in co-operation with the European Investment Bank (EIB), contains a comparative analysis of direct public funding mecha- nisms for film and audiovisual works in 35 European countries. Alongside other measures such as funding of public broadcasting services, regulation of relations between broadcasters and producers and the implementation of tax incentive schemes, direct funding is one of the most traditional and important ways in which public authorities support the film and audiovisual industry. Virtually all European States, as well as territorial communities, regions, Public funding some municipalities, the European institutions (Council of Europe, European Community) and various intergovernmental organisations have set up direct aid mechanisms that provide around EUR 1,3 billion of funding for the industry each year. The European Audiovisual Observatory's KORDA for film and database, an important source of information for this report, lists more than 170 support bodies and around 600 different aid programmes. audiovisual works Backed up with facts and figures, this study illustrates the enormous diversity of these mecha- nisms: diversity in terms of legal foundations, the tasks fulfilled by national support bodies, funding, methods of intervention and, in particular, the sums involved. Despite this variety, which results from the history and political and administrative structure of each European state, the support in Europe bodies are keen to find common conceptual ground for their policies, based on the notion that film and audiovisual creativity cannot be governed solely by the rules of the market and that funding is justified by the need for cultural diversity. The European Commission does not question this principle, although it does have to ensure that funding does not disrupt the correct functioning of – A comparative the common market. The report describes how this whole issue has evolved since 1963 up to the recent European Commission Communication of 16 March 2004. approach The report covers recent events up to spring 2004: reform of Eurimages, new laws in Germany, Italy, Hungary, draft laws in Poland and Portugal, etc. Finally, Olivier Debande, an expert at the European Investment Bank, analyses the role of private investors and intervention by the banking sector in three countries using distinct models (USA, United Kingdom, France). Scientific coordination: André Lange and Tim Westcott André Lange and Tim Westcott, With the collaboration of Olivier Debande and Susan Newman. with the collaboration of Olivier Debande and Susan Newman Also available in French and German 176 pages, 70 tables, 17 graphs. Published in cooperation with ISBN 92-871-5439-2 the European Investment Bank EUR 120,- Public funding for film and audiovisual works in Europe – A comparative approach Published by the European Audiovisual Observatory 76, allée de la Robertsau - F-67000 Strasbourg - France Tél. +33 (0)3 88 14 44 00 - Fax +33 (0)3 88 14 44 19 E-mail : [email protected] www.obs.coe.int Public funding for film and audiovisual works in Europe – A comparative approach André Lange and Tim Westcott, with the collaboration of Olivier Debande and Susan Newman Published in cooperation with the European Investment Bank AT Austria Autriche Österreich Members BE Belgium Belgique Belgien of the European BG Bulgaria Bulgarie Bulgarien Audiovisual Observatory CH Switzerland Suisse Schweiz CY Cyprus Chypre Zypern CZ Czech Republic République tchèque Tschechische Republik DE Germany Allemagne Deutschland DK Denmark Danemark Dänemark EE Estonia Estonie Estland ES Spain Espagne Spanien FI Finland Finlande Finnland FR France France Frankreich GB United Kingdom Royaume-Uni Vereinigtes Königreich GR Greece Grèce Griechenland HR Croatia Croatie Kroatien HU Hungary Hongrie Ungarn IE Ireland Irlande Irland IS Iceland Islande Island IT Italy Italie Italien LI Liechtenstein Principauté du Fürstentum Liechtenstein Liechtenstein LT Lithuania Lituanie Litauen LU Luxembourg Luxembourg Luxemburg LV Latvia Lettonie Lettland MK “The former “Ex-République “Ehemalige jugos- Yugoslav Republic yougoslave lawische Republik of Macedonia“ de Macédoine” Mazedonien“ MT Malta Malte Malta NL Netherlands Pays-Bas Niederlande NO Norway Norvège Norwegen PL Poland Pologne Polen PT Portugal Portugal Portugal RO Romania Roumanie Rumänien RU Russian Fédération Russische Federation de Russie Föderation SE Sweden Suède Schweden SI Slovenia Slovénie Slowenien SK Slovak Republic République Slovaque Slowakische Republik TR Turkey Turquie Türkei EUR 25 European Communauté Europäische Community européenne Gemeinschaft Public funding for film and audiovisual works in Europe – A comparative approach © European Audiovisual Observatory, Strasbourg, 2004 A report by the European Audiovisual Observatory, in cooperation with the European Investment Bank ISBN 92-871-5439-2 EUR 120,- Director of publication | Wolfgang Closs Scientific coordination and editing | André Lange and Tim Westcott, European Audiovisual Observatory Contributions | Olivier Debande, European Investment Bank, Susan Newman, European Audiovisual Observatory. Assistant editor | Valérie Haessig Acknowledgements | the European Audiovisual Observatory would like to thank: • Mr Pierre Deleau, Director of the European Investment Bank, • Mr Olivier Debande, for his contribution to this report (Chapter 12). • All of our contacts within funding bodies at European, national and regional level who supplied us with the information necessary for this report and in order to update the KORDA database of public aid for the film and audiovisual industry in Europe. • Mmes Anne-Marie Autissier and Catherine Bizen who authorised us to publish, in updated form, parts of the study Public Aid Mechanisms for the Film and Audiovisual Industry in Europe – Comparative Analysis of National Aid Mechansims, published in 1998 by the CNC and the European Audiovisual Observatory. Layout | Acom* Healthcare Europe, Paris | Printed in France TABLE OF CONTENTS Forewords Wolfgang Closs Executive Director, European Audiovisual Observatory, “Systematic information and analysis of public policies supporting the film and audiovisual industry: a priority area of work for the European Audiovisual Observatory” 5 Michel Deleau Director General – Projects Directorate, European Investment Bank (EIB), “Bank lending to the film and audiovisual industry: the involvement of the European investment bank” 8 Chapter 1 The political and institutional context of public aid for the film and audiovisual industry in Europe 11 Chapter 2 The different forms of public policy related to the film and audiovisual industry 19 Chapter 3 The economic and political basis for aid to the film and audiovisual industry 27 Chapter 4 Status, aims and tasks of agencies that support the film and audiovisual industry 35 Chapter 5 The funding bodies in Europe – a general overview 45 Chapter 6 Requirements to qualify for production support 77 Chapter 7 Cultural cooperation – principles of co-production 87 Chapter 8 Types of funding 99 TABLE OF CONTENTS | PAGE 3 Chapter 9 Analysis of intervention by the funding bodies in Europe 115 Chapter 10 European and other supranational funding 131 Chapter 11 Macro-economic parameters of film and audiovisual production and public funding policies 145 Chapter 12 Financing the European audiovisual market: the role of private investors by Olivier Debande, European Investment Bank (EIB) 157 Annex Recent legal developments in film law in Europe Articles from IRIS – Legal observations of the European Audiovisual Observatory 173 PAGE 4 | TABLE OF CONTENTS FOREWORDS Systematic information and analysis of public policies supporting the film and audiovisual industry: a priority area of work for the European Audiovisual Observatory Wolfgang CLOSS Executive Director European Audiovisual Observatory Due to its unique characteristics, the film and audiovisual sector has attracted particular attention in terms of public policies in the European states virtually since it first came into existence. Such public intervention has been necessitated by the domina- tion of the international film market by the Hollywood giants since the end of the First World War, as well as the economic weakness of national film industries and the political and cultural issues associated with the production and distribution of images. Public authorities can affect the economic structure of the film and audiovisual industry in various ways. The most traditional forms of intervention concern the regulatory and financial struc- ture of television. Public bodies exert a strong influence on the economy of the sector through the way television is funded (whether through public funding or the regulation of private funding), by imposing a regulated structure on relations between broadcasters and producers, and by obliging broadcasters to invest in production. In parallel to their policies on the structure of the television sector, public authorities have set up various forms of sectoral aid. Sectoral aid is traditionally defined as any financial interven- tion by public authorities in the day-to-day running of a given market. Public authorities' financial intervention to support the film and audiovisual industry can take a variety of different forms: a. direct intervention in the form of subsidies in the strict sense of the term b. tax relief on income, aimed at
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