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Why have European governments provided public funding for film production?
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Director Steven Spielberg holding the movie camera, assisted by camera operator Michael Chapman, during the filming of Jaws (1975).
European governments provide public funding for film production primarily because films are viewed as cultural goodsâessential tools for artistic expression and for developing and forging national identity. Because these films are deeply rooted in domestic culture, they often struggle to compete with the transnational appeal of Hollywood productions, making it difficult for producers to raise sufficient private capital.12
To address this, European institutions utilize a "cultural exception" waiver, allowing for state support that would otherwise be prohibited as a distortion of market competition. Public funding is distributed across three levels:2
- Regional/Supranational: Programs from the Council of Europe and the European Union support transnational cooperation, skill exchange, and the development of a common European culture.2
- National: Individual states provide funding through selective criteria (evaluating artistic quality) or automatic criteria (based on requirements like crew or location nationality).2
- Subnational: Local governments provide funding primarily for economic reasons, such as stimulating local employment, generating tax revenue, and promoting film-induced tourism by attracting production shoots to their territories.2