EIB plans to bankroll EU film industry

Date: 28/09/00

By Peter Chapman

CAPITAL-starved film-makers are set to grab a share of a €12-billion European Investment Bank fund designed to help the EU make the most of the information society.

The move follows concern that massive box-office potential is not being exploited because Europe is lagging far behind Hollywood in the race to finance film production and distribution.

Officials at the EIB - the Union's long-term lending arm - say 'content' projects such as blockbuster films will be eligible for financing under the 'Innovation 2000 Initiative' (I2I) over the next five years. In the past, such funding has been limited to traditional infrastructure projects and efforts to improve research and training. "For us, the content side is the most noble," said a spokesman.

He added that this part of the I2I plan, set to be finalised before Christmas, would target blockbuster movies but could also cover any entertainment, information and educational projects with money-spinning potential. "It will not just be feature films. The money could go in all directions," said the spokesman, adding that the EIB's sister organisation, the European Investment Fund, might also channel cash directly into private venture funds which invest in the content sector.

Philippe Kern, secretary-general of the European Film Companies Alliance (EFCA), welcomed the news, adding that his members would meet bank staff to help steer the investment strategy. "The EIB is lacking experts in this field so at this stage they have asked us to push forward ideas and for them to take it from there," he said. "It seems the EIB is looking for big projects. From an EFCA point of view, the money should be used to raise finance for companies which want to make not one or two but a slate of international films that can compete on a pan-European basis."

Capital-starved film-makers are set to grab a share of a €12-billion European Investment Bank fund designed to help the EU make the most of the information society.