Creative Europe : a new approach to European cultural and creative funding Fabien Miclet European Music Office

 Brussels-based non-profit association working for the music sector at European level, 16 members in 11 countries (Ex: ICEC)  Key missions: foster circulation of European music artists and repertoires, information on music in EU policies, development of professional organisations in the European music sector.  Secretariat of the European Platform on the Potential of Cultural and Creative Industries. The European Music Office

 New structure: Merging 3 existing Programmes (Culture, MEDIA, MEDIA Mundus) and creating new tools.  New objectives : Strengthening the competitiveness of the cultural and creative sectors ‘with a view to promoting smart, sustainable and inclusive growth’ (+linguistic and cultural diversity).  A larger proposed financial envelope : EC suggests budget of € 1.8 billion for 7 years (37% increase compared to funding). Creative Europe: The European Commission’s proposal (11/2011)

 Role of the political context  EU 2020 strategy: smart, sustainable and inclusive growth  Budget negotiations: tough climate, focus on priorities  Choice to move focus from citizenship and intercultural dialogue to more ‘cost-efficient’ topics such as strengthening the competitiveness of the cultural and creative sectors. ‘Priority to results’.  ‘European added value’ Why this new Creative Europe Programme?

 New challenges identified by the European Commission  Fragmentation of the EU market for cultural works  Digital economy: necessity to adapt to new consumer practices  Financing gap for cultural and creative businesses and organisations  Lack of figures to clearly identify the problems  ‘Culture Programme’ not adapted to all sectors Why this new Creative Europe Programme?

 New architecture: an ‘umbrella’ Programme  3 ‘Strands’ : Culture (30%) / Media (55%) / New ‘Cross Sectoral’ Strand (15%)  Brings together MEDIA and Culture contact points  Simplification of calls and procedures What are the main features of the Programme?

 Priorities in the legal basis:  ‘Promote the transnational circulation of cultural and creative works and operators and reach new audiences in Europe and Beyond’  ‘Strengthen the financial capacity of CCS, in particular SMEs’  ‘Support transnational policy cooperation in order to foster policy development, innovation, audience building and new business models’ What are the main features of the Programme?

 New tools and measures: Cross-sectoral Strand  Financial guarantee for small operators  Data collection funding Culture Strand  European ‘Platforms’  Support to international touring MEDIA Strand  Increased support to cross-border distribution of films, co- productions  Support to new business models and capacity-building What are the main features of the Programme?

 Objectives:  Creating a guarantee fund for banks in order for cultural and creative SMEs to have an easier access to credit, to take risks and innovate.  Providing capacity building (knowledge on CCIs) to the banks  Increasing the geographical spread of banks willing to work with cultural and creative SMEs  EC projection: € 200 m of guarantee could trigger more than € 1 billion worth of loans  Long term objective : a permanent change of mentality among banks towards cultural and creative industries The Cultural and Creative Sectors Guarantee facility

 How will it work?  Managed by European Investment Fund (EIF)  A network of banks in all 27 countries working with the instrument  Banks will propose portfolios of guaranteed loans directly to operators willing to access credit (up to 1 million euros)  The fund would cover potential bank losses up to 70% per loan (max. 25% per portfolio)  The banks will receive training to understand the ‘risk profile’ of the sectors (intangible assets, market gaps)  Accessible to cultural and creative SMEs and not-for-profit organisations fulfilling the objectives of Creative Europe  Complementary to grants The Cultural and Creative Sectors Guarantee facility

 Proposed: + 37%, 1.8 billion  Budget summit February 2013: transversal cuts ( +18 %?)  1 st semester 2013: ‘Trilogue’  Objective: agreement before the end of the Irish presidency  Calls: September/October 2013  Eligibility period: from 1 st January 2014 onwards Next steps for the adoption of the Programme

 Culture Strand: European ‘Platforms’  Network of concert venues in Europe (ex: Sala Apolo)  Objectives: reward risk-taking, increase visibility and cross-border mobility of European music talents  Europa Cinemas model: ‘bonus’ system, ‘label’  Long-lasting effects  Panel at Primaverapro on 24/05 Example of potentially eligible project: E.A.R (European Artists on the Rise)

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