ANNOUNCEMENT 17 Jun 2010

In June 2010, the government of the Czech Republic announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 17 Jun 2010 | Removal date: 14 Dec 2018
Still in force

Production subsidy

 On 17 June 2010, the European Commission approved a Czech film support scheme aimed at "supporting film culture and production of audiovisual works in the Czech Republic, including national production, co-production and foreign production" (par. 3, letter from the EC to the Czech Republic, 17.06.2010).
In order to be eligible for the scheme, the movie producer must fulfill a number of criterias listed in paragraphs 11-19, such as meet a certain category of films or secure at least 75% of the financing before applying for the state aid.
The overall budget is planned at about 240.2 million EUR with an annual budget of 38.6 million EUR. The maximum eligible aid intensity shall be 20% for goods and services, while the intensity of actor remuneration may not exceed 10%. The eligible costs used to calculate the aid intensities have to be below 80% of the entire budget. Furthermore, "beneficiares may spend at least 20% of the implementation budget in another member state" (par. 7).
According to the Commission, "since the beneficiaries are active in selling products or services which are, at least potentially, subject to intra-Community trade, this support is likely to affect trade between Member States" (art. 20, letter from the EC to the Czech Republic, 17.06.2010). However, the EC deemed the state aid to be compatible with the single market.
The scheme was initially approved until 31 December 2015 but was later prolonged for another three years (cf. Sources).

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A