EC's plan to cut aid worries Euro film biz
Some fear move would open way for H'wood dominance
State funding will be limited to half a movie's budget, except for films that member state governments decide are "difficult and low-budget." Cut is substantial for filmmakers in the Nordic countries, Belgium and the Netherlands, who often receive subsidies of 80%.
"People should wake up -- there is a real danger subsidies could be restricted still more when the guidelines are reviewed in 2004," said European Film Cos. Alliance secretary general Philippe Kern.
EFCA, which represents the European move industry (its members include Pathe, CLT/Ufa and FilmFour), also believes the guidelines skew funding toward cultural pics and away from commercial movies.
The ECFA has attacked the new system in a letter to EU competition chief Mario Monti and Culture Commissioner Viviane Reding. By publishing the guidelines, "the European Commission authorities are playing into the hands of the U.S. trade negotiators who will not fail to exploit them to restrict European aid … to the sector and consolidate Hollywood's dominant position on the global market," warned the EFCA.
On the plus side, culture ministers plan to eliminate value-added tax from "cultural products" when the EC reviews VAT policy next year.
