Posted: Sun., Sep. 25, 2005, 6:00am PT

Teuton media of two minds

Election coverage has earned big ratings

By ED MEZA

The most inconclusive election outcome in Germany's post-war history has left the country seemingly rudderless and the showbiz sector anxiously awaiting resolution. In a country where politics plays a key role in every facet of the media, political stasis is detrimental.

But the riveting drama has made for great television.

Early coverage of the Sept. 18 election garnered pubcaster ARD a 23% share and 5.5 million viewers. By primetime, that share soared to a whopping 37.6% for both ARD and ZDF as 13.4 million viewers tuned in for the bizarre spectacle of a belligerent Gerhard Schroeder losing his cool.

Seemingly oblivious to the fact that his coalition had just lost its ruling majority, Schroeder pronounced himself winner, declared his right to remain chancellor, insulted TV moderators and taunted opponent Angela Merkel: "It's perfectly clear that no one except me is in the position to form a stable government. No one except me!" But looking beyond Schroeder's ratings-grabbing antics, there are major industry issues at stake, such as the role of private investment in film, the future of film subsidies and a planned $36.5 million-a-year revolving fund set up by the Schroeder government -- issues on which the four top parties hold vastly different positions.

Merkel is partnering with the free-market liberal FDP, the only party backing a sale-and-leaseback model for film investment. She is also courting the Greens for an unprecedented three-way coalition that could make her Germany's first female chancellor.

The Greens, however, are no fans of tax incentives for film investors and instead support increasing film subsidies. For local producers, that could be a win-win situation -- at least theoretically.

But if a grand coalition between Merkel's conservative party and Schroeder's SPD comes to pass, the film biz may find itself sidelined as major economic issues take centerstage.


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