Market schemes steal spotlight

Date: 25/07/1996

By Fiona McHugh

MARCELINO Oreja is a hard-working man, which is just as well. For he has been given the unenviable task of getting Europe's crippled film industry back on its feet.

Over the past ten years, European film-makers have lost 50&percent; of their domestic market share to American rivals, giving the latter control of between 80&percent; and 90&percent; of box office hits in Europe.

Last year alone, the trade deficit in favour of the US ran to a staggering 4 billion ecu. Hollywood, as the figures demonstrate, is stealing the show.

Reacting to rampant fears about cultural imperialism during the late Eighties, the EU mounted a brave defence of its cinematic heritage, introducing a system of voluntary quotas in 1989 despite vociferous objections from the US.

Five years later, however, that system seems to be falling from favour. With governments around the bloc selling off everything but their kitchen sinks, and negotiators working night and day to dismantle trade barriers, there is little room in Europe for unsubtle protectionist measures.

The Commission too has seen a sea change of opinion in recent years, precipitated perhaps by the departure of former Commission President Jacques Delors, an ardent defender of la culture.

And though the existing broadcasting regime has not been dropped, it has being sidelined by more market-oriented schemes.

Spanish Culture and Audio-visual Commissioner Marcelino Oreja is a man in step with the times. Despite his naturally ebullient nature, he too can muster little enthusiasm for quotas. Forget about art, forget about culture. They exist because they must, he explains.

“There has been a lot of misunderstanding, so let me say this very clearly: we have quotas on a European level because we have them on a national one. To safeguard the single market, we have had to harmonise the different regimes. But this is not a system which will last forever.”

Although Oreja does not point to any demonstrable positive effects which have flowed from quotas, he admits that “they would not be in place nationally if they did not help”.

But, help or no help, it is clear that this is not the Commissioner's preferred route to recovery - investment is. Mention that ten-letter word and Oreja's eyes light up with delight.

It was he, after all, who proposed the guarantee fund last year - a bold investment initiative aimed at revitalising Europe's film industry.

Worth 200 million ecu, it would, if adopted by ministers and MEPs, offer financial backers partial guarantees on loans and credit to makers of commercially-sound programmes and films.

Industry loved it.

“This is an excellent programme which would revive European cinema,” said one film representative. “If Europe wants to be present in the information society, it must have content. And to encourage the development of content we need schemes such as these.”

A market-style programme, offering incentives and not crutches to artists, the guarantee fund seemed certain to win government approval as well. However, to the surprise of many, it failed to fly. Germany, the UK and the Netherlands, accusing the Commission of not doing its financial homework, opposed the fund in the Council of Ministers.

But Oreja is not discouraged. On the contrary. His staff are preparing a revamped version of the plan which he says should get through Council by Christmas - if the film and television industries makes their case to national governments.

“We proposed this because industry asked us to. Now it is time for them to tell their governments what they want,” he insists.

“I am convinced that this measure could be extremely helpful to young film-makers. They frequently are unable to raise the money needed to make top-quality programmes.”

But Oreja is not just a free-market man. He also harbours a few traditional thoughts. Asked, for instance, whether European film-makers concentrate too much on art, and too little on the market, he grows indignant. “It would be inconceivable for television not to take into consideration the richness and diversity of European culture,” he says.

“This is a very important part of our European culture; how could we ignore it? Our diversity is what sets us apart from America, where there is only conformity,” he adds, sounding just a little like Delors.