UK to block EU-wide art royalty rules

Date: 17/06/1999

By Renée Cordes
THE German presidency's hopes of brokering a deal next week on planned new EU-wide rules which would force galleries and auction houses to pay royalties to artists look set to be dashed.

The aim of the measure is to put competing art centres within the Union on an equal footing and create a single market in artworks.

But the UK, which has fiercely resisted the move so far amid fears that it could drive business away from London's prestigious auction houses to New York and Geneva, still questions the need for such legislation and will press for further changes to the proposal at next Monday's (21 June) meeting of internal market ministers.

An earlier draft which would have entitled artists to royalties of between 1% and 4% depending on the value of the work was rejected by the UK at the last ministerial meeting in February, forcing Bonn back to the drawing board.

A new compromise proposal calls for lower royalty payments of 0.5% for works of art worth more than €500,000, but still envisages varying degrees of royalties of up to 4% for other works of art depending on their value.

Although the UK could be outvoted at next week's meeting, Germany is anxious to win over the member state which is likely to be most affected by the measure. "It would not look very good without the support of the UK," said one EU official.

But that backing does not yet appear to be forthcoming, with British officials insisting they will continue to seek ways to make the system "less damaging".

"We appreciate the fact that Germany is trying to make an effort, but we are opposed to the whole thing," said one.

Austria, Ireland and Luxembourg are the only other EU countries which do not require royalty payments - known as droit de suite - to be paid to artists when their works are sold.