Deputy head of the art department at the Ministry of Education and Culture Balázs Sámuel held coordination talks with the European Commission's directorate for competition policy about the lessons learnt from Hungary's current film subsidy system, which expires at the end of this year, and on the outlines of the new system to come into force in 2008 for a two-year period. The EU will only approve Hungary's film subsidy allocation if an agreement is reached on the principles of the system.
The subsidy programme for 2006-2007 was approved without an in-depth analysis because it was designed before Hungary joined the EU.
Sámuel said the ministry will take into consideration Brussels' urging when submitting a proposal to the Motion Picture Coordination Council, which will include changes to the rules. He expressed hope that an agreement on the new rules could be reached by year-end.
The European Commission has suggested that the tax breaks Hungary offers to film supporters be limited to projects which have "cultural content". The EU has no objections against Hungary offering the write-offs if the conditions of eligibility are amended.
Sámuel said a number of options for changing the rules have been proposed, among them allowing the subsidies for films that are technically difficult to make.
Under the subsidy programme, investors who support film productions with cash subsidies - essentially donations - may deduct this subsidy from their tax base as well as from their payable taxes
Source: Hungarian News Agency (MTI)
