State aid — films and other audiovisual works

SUMMARY OF:

Communication from the Commission on State aid for films and other audiovisual works

WHAT IS THE AIM OF THE COMMUNICATION?

• It aims at spelling out clear criteria framing EU countries’ financial intervention in favour of the film and audiovisual industries.
• It establishes the rules for assessing whether national audiovisual support schemes do not affect trading conditions and competition in the EU to an extent that is contrary to the common interest, and whether they therefore comply with EU State aid rules.

KEY POINTS

Rules for assessing audiovisual support schemes

The 2013 Communication updates rules originally drawn up by the European Commission in 2001. The new rules include the following key elements:

• they cover all aspects of film creation from story concept to presentation to the audience which are cultural, according to the national ‘cultural test’ in place;
• aid for video games is not covered (not all games qualify as audiovisual works);
• they limit the possibility for EU countries to require that a certain part of the supported film budget is spent in the aid-granting EU country as a condition for granting production support;
• they allow aid of up to 50% in principle, 60% for co-productions funded by more than one EU country and involving producers from more than one EU country and up to 100% for difficult works and some international co-productions with low-income countries;
• distribution and promotion activities may be supported to the same limits as those applied for the production;
• aid for pre-production activities can also benefit from aid up to 100%;
• they enable support to pre-production, production, promotion and distribution activities, while excluding aid that would be specifically targeting one activity of the production value chain;
• they increase transparency towards citizens as the following must be published on a public website:
  • the full text of the approved aid scheme and its implementing provisions,
  • for aid awards exceeding €500 000, the details of the aid beneficiary and the aid amount.

FROM WHEN DOES THE COMMUNICATION APPLY?

It has applied since 16 November 2013.

BACKGROUND

In 2001, the Council adopted a resolution on national aid to the film and audiovisual industries. This highlighted that the European film and audiovisual industries play a crucial role in the preservation of cultural diversity in Europe but that they suffer from structural weaknesses, such as:

• the under-capitalisation of companies;
• fragmentation of national markets, which are dominated by non-European productions; and
• poor transnational circulation of European works.

The resolution called for:

• EU countries to conduct national policies to support the creation of film and audiovisual products, since national aid may contribute to the emergence of a European audiovisual market;
• continued discussions between EU countries and the Commission to increase legal certainty for these arrangements.

Article 107(3)(d) of the Treaty on the Functioning of the EU states that aid to promote culture and heritage conservation may be compatible with the common market if it does not affect trading conditions and competition in the EU to an extent contrary to the common interest.

The objective of cultural diversity justifies the specific nature of national aid to the film and audiovisual industries: national aid is essential to contribute to the emergence of a European audiovisual market.

For more information, see:

• Competition in the media sector (European Commission).

MAIN DOCUMENT

Communication from the Commission on State aid for films and other audiovisual works (OJ C 332, 15.11.2013, pp. 1-11)

RELATED DOCUMENTS

Consolidated version of the Treaty on the Functioning of the European Union — Part Three — Union policies and internal actions — Title VII: Common rules on competition, taxation and approximation of laws — Chapter 1: Rules on competition — Section 2: Aids granted by States — Article 107 (ex Article 87 TEC) (OJ C 202, 7.6.2016, pp. 91-92)

Communication from the Commission amending the Communications from the Commission on EU Guidelines for the application of State aid rules in relation to the rapid deployment of broadband networks, on Guidelines on regional State aid for 2014-2020, on State aid for films and other audiovisual works, on Guidelines on State aid to promote risk finance investments and on Guidelines on State aid to airports and airlines (OJ C 198, 27.6.2014, pp. 30-34)

Council resolution of 12 February 2001 national aid to the film and audiovisual industries (OJ C 73, 6.3.2001, pp. 3-4)

last update 23.09.2019