The six-year scheme includes support for filmmaking, promotion, distribution and the operation of art cinemas, as well as a 20 percent tax refund, a key incentive for international productions filming in Hungary.
The total budget the EC approved for 2008 is 6.9 billion forints (EUR 29.6m), of which 3 billion forints (EUR 12.8m) will be going towards filmmaking alone and a similar amount for tax refunds.
European Commissioner for Competition Neelie Kroes welcomed the Wednesday decision which he said came after Hungarian authorities had made amendments to the motion picture law to bring it into line with European Union regulations on cultural content.
Hungary's Parliament amended the 2004 motion picture law early last month to bring it into line with the European Union regulations and limit state subsidies to productions with appropriate cultural content. Under the amended law eligibility for state subsidies and tax allowances is determined on the basis of several criteria. Films that focus on Hungarian or European cultural topics, present European customs and way of life, adapt literary works or represent important Hungarian or European values are preferred.
Twenty percent of national subsidies are open for film-makers coming from outside Hungary.
Source: Hungarian News Agency (MTI)
