EC Approves Dutch Film Funds

by Ulrika Lomas, for LawAndTax-News.com, Brussels

17 July 2007

The European Commission announced last week that it has endorsed two new funds in The Netherlands for supporting cinema films.

The funds, with a total budget of EUR162 million (and an annual budget of EUR27 million), are available in the form of direct grants for the production and release in cinemas of feature films of cultural value, which contribute to the diversity of films in The Netherlands.

The aid is not intended to exceed 50% of the films' costs, with possible exceptions for difficult and low budget films.

An investigation undertaken by the Commission found that the schemes were compatible with the criteria set out in its 2001 Communication on state aid for cinema and audiovisual works. The schemes have been approved until July 1, 2013.

Competition Commissioner Neelie Kroes explained that:

“The Commission is satisfied that the new Dutch film funds comply with EU state aid rules. Thanks to the cooperation of the Dutch authorities, we were able to approve these schemes, which aim to produce and release high quality Dutch films, quickly. ”

In order to be eligible for support under the schemes, cinema feature films need to meet at least three out of seven possible cultural criteria, namely that:

• The screenplay on which the film is based is mainly set in the Netherlands, or in another Member State of the EU or EFTA;
• At least one of the principal characters is connected with Dutch culture or the Dutch language area;
• The original screenplay, on which the film is based, is written mainly in the Dutch language;
• The screenplay on which the film is based is an adaptation of an original Dutch literary work;
• The main theme of the cinema film concerns art and/or an artist / artists;
• The main theme of the cinema film concerns historical figures or events; and/or
• The main theme of the cinema film addresses actual, cultural, social or political issues relevant to the Dutch population.

As is the case with other European film support schemes, the new Dutch film funds impose territorial conditions, which require that a proportion of the film production expenditure is incurred in the Netherlands.

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