Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-11-14-Speech-2-309"
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"en.20061114.37.2-309"2
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"The Commission is currently in discussions with the UK authorities concerning the UK film tax incentive scheme, which has been notified to the Commission under the state aid rules.
The Commission is assessing that case on the basis of the 2001 Cinema Communication, which provides that Member States can grant state aid to film production if the content of the film concerned is cultural, according to verifiable national criteria. In line with the subsidiarity principle, the Cinema Communication leaves Member States to determine those verifiable national criteria. Neither Article 151 of the Treaty nor the Cinema Communication exclude the possibility that third-country productions or co-productions can benefit from state aid provided by Member States to support films. However, the Cinema Communication allows Member States to require that up to 80% of the film production budget be spent in the territory concerned in return for state aid.
The UK scheme contains such a requirement. Also it was not quite clear, on the basis of the initial notifications of the UK film tax incentive, that European co-productions which meet the conditions of the European Convention on Cinematic Co-production do not need to pass the UK cultural test to benefit under the scheme. At the Commission’s request the UK authorities have clarified that in their published guidance on the scheme. Therefore, the conditions for European co-productions to benefit from the scheme are in line with commonly used European standards. In contrast, US productions and US-UK co-productions must pass the UK cultural test to benefit from the tax scheme.
The UK cultural test contains the verifiable national criteria, which are intended to ensure that the aid is being directed towards a cultural product. That is one of the aspects of the scheme that the Commission is examining."@en1
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