Film sector urges lax approach to state aid

Date: 26/10/00

By Peter Chapman

EU FILM-MAKERS are asking the European Commission to ignore breaches of Union state aid rules while they battle to narrow a 7-billion euro trade gap with Hollywood.

The demand comes after competition chief Mario Monti's department ducked a public row over the issue by abandoning plans to publish new guidelines on how it intended apply the rules to the industry. Monti's officials declared instead that the film sector was the same as any other industry and they would continue to enforce state aid rules on a case-by-case basis.

Those sympathetic to the sector's cause feared that the new guidelines would have resulted in a tougher approach to the beleaguered industry, in line with Monti's declared policy of 'zero tolerance' towards state aids in general. But the industry is pushing the EU to adopt a more lenient approach as the issue is debated over the next year.

Philippe Kern, secretary-general of the European Film Companies Alliance (EFCA), said member states' efforts to support their film industries were being hampered by the existing regime and insisted governments should not be forced to account for their handouts to the sector. "What we are saying is that with the European film industry so weak in its own market - with a 15% share - why is the Commission worried about state aids? The EU's own industry is marginalised," he explained.

Kern added that the French presidency was working on a 'resolution' of support for state aid to the sector which could be approved by EU culture ministers at their 23 November meeting and possibly discussed at the Nice summit in December.

EU film-makers are asking the European Commission to ignore breaches of Union state aid rules while they battle to narrow a €7-billion trade gap with Hollywood.