THE ECONOMY OF CULTURE PROPOSAL FOR A EUROPEAN STRATEGY Berlin 4th May 2007

“The Community shall contribute to the flowering of the cultures of the Member States, while respecting their national and regional diversity and at the same time bringing the common cultural heritage to the fore. […]” “The Community shall take cultural aspects into account in its action under other provisions of the Treaty, in particular in order to respect and to promote the diversity of its cultures.” Article 151 of the EC Treaty.

State Aid to Cinema 2001 Communication on cinema and audiovisual production: Reserved to cultural films (Definition?) Territorialisation level of max. 80% Set a limite of 50% aid intensity (of the production costs of a film) Up to 100% aid intensity for « difficult and low » budget films

“Creative people do not get the backing they deserve because you can’t put a figure on creative value”. Ian Livingston, Creative Director Eidos

EU Support to culture & innovation STRUCTURAL FUNDS: € 308 billion Innovation: FP7: € 53 billion CIP: € 3.6 billion Content: CULTURE: € 400 million MEDIA: € 755 million Total: € 56.6 billionTotal: € 1.1 billion

Quantifiable socio-economic impact of the cultural and creative sector TURNOVER  More than €654 billion in 2003 VALUE ADDED TO EU GDP  2.6 % of EU GDP in 2003 CONTRIBUTION TO EU GROWTH  In growth 12.3% higher than the growth of the general economy. EMPLOYMENT  In million people employed. = 3.1% of total employed population in EU25.

Leonard da Vinci: Study of proportions (1487)

« Le Peer-to-Peer opère comme une subvention au déploiement des infrastructures de distribution. » Olivier Bomsel, Economist, École des Mines, Paris.

Rembrandt: Self-Portrait (1669)

Guggenheim Museum, Bilbao, Spain

“Not everything that counts can be measured, and not everything that can be measured counts.”

« Culture will help us to counter the growing imbalance between the rational and the emotional sides of European affairs. This imbalance fuels a sense of indifference and distance towards Europe among our people. » Commission President Barroso

“You just can’t get the same level of comfort with creative investment as you can with something like semiconductors, say that you can see and touch”. David Carratt, Kennett Ventures

EIB lending programme for innovation: i2i ( ) € 34.8 billion € 105 million

Digital Shift in € million (EU25 ) Market size in terms of revenues VOD Market301,269 Digital Music (online – mobile)196.31,794 Games (online, mobile)6992,302 Publishing8492,001 Radio15250 Source: European Commission, Study on Interactive content and convergence: Implications for the information society. From a market valued at € 1,7 billion in 2005 to € 8.3 billion by 2010 (400% growth)

Proposal for a Creative Europe Develop statistical information Support digital shift / Better arbitration of ressource allocation Improve investment in the sector (EIB) Culture to become a main element of EU’s cooperation, trade and development policies

51 rue du Trône 1050 – Brussels Tel: PDF file of the study available on Blog:

Local Development Creative cities London 6% annual growth (3% general economy) Second largest business sector (29 billion GDP annual turnover) Third largest sector of employment Source: GLA 2002 “Creativity: London’s Core Business Report”, 2004 Report on London’s Creative Sector

P. Picasso, Dora Maar With Cat (1941). 70 million EUR in 2006.

“The fallacy of innovation is that it is all about spending on R&D and information technology”. Diana Farrel, Director of the McKinsey Global Institute

CountryNumber of film production companies Number of companies producing maximum 1 film Percentage Belgium555090% Czech Republic555090% Estonia18 100% Finland302583% France % Greece % Italy % Spain % Sweden565292% UK % Film companies in Europe (Size)

The Digital Shift: outlook for digital distribution Online content distribution: TV programmes, radio, music, movies, games, publishing EC study predicts over 400% growth for creative content online in five years in the EU Source: DG Infso study on Interactive content and convergence 2006