1. European Commission, DG Competition, Directorate C, Unit C4 State aid for promoting culture or for attracting mobile expenditure? DG Competition Wouter Pieké DISCLAIMER "The views expressed are purely those of the writer and may not in any circumstances be regarded as stating an official position of the European Commission." Workshop 3: “Cinema between culture and industry” Mons, 5 July 2010

2. European Commission, DG Competition, Directorate C, Unit C4 My unit Examines State aid in the information, communication and media markets (and sports) Drafted Broadband Guidelines, Broadcasting Communication and Cinema Communication Mostly decisions on broadband, broadcasting, digital switchover and film aid.

3. European Commission, DG Competition, Directorate C, Unit C4 Film aid 31 (amendments of) film schemes approved in 2009 and first half of 2010 Main difficulties encountered: “verifiable cultural criteria”, fiscal measures, unnecessary restrictions to the fundamental freedoms. Press reports on Czech film scheme: culture + attracting mobile “shooting”.

4. European Commission, DG Competition, Directorate C, Unit C4 The State aid rules - Article 107(3) TFEU - (3) c) or d)? (3)c): facilitate development of economic activities (3)d): promote culture and heritage conservation For both derogations aid must be necessary and proportionate Difference: no operating aid possible under (3 )c) Aid intensities for economic activities usually low

5. European Commission, DG Competition, Directorate C, Unit C4 2001 Cinema Communication Aid should be directed towards overall budget of a specific film-making project – then (3)d) may apply. Also: verifiable cultural criteria needed Territorial conditions allowed, “limited to the minimum degree required to promote cultural objectives” The earmarking of aid to specific individual items of a film budget – rather aid to a sector of activity to be assessed under (3)c).

6. European Commission, DG Competition, Directorate C, Unit C4 Other types of aid Like other companies, cinematographic companies may also be beneficiaries of aid for regional development, R&D&I, risk capital, environment, training, various SME promotion measures and other horizontal aid schemes approved under (3)a), b) or c).

7. European Commission, DG Competition, Directorate C, Unit C4 2009 prolongation of CC Need to look at activities outside film-making (film distribution and digital projection) Need to look at regional film schemes Need to look at State aid to attract inward investment from large-scale, mainly US, film production companies Review by 31.12.2012.

8. European Commission, DG Competition, Directorate C, Unit C4 Conclusion (3)c) and 3(d) will remain relevant for State aid in the film sector Competition between Member States to attract mobile investment needs to be addressed Cinema digitisation aid needs to be addressed too, preferably based on more decided cases.