Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the implementation of a training programme for professionals in the European audiovisual programme industry (MEDIA - Training) (2001-2005)

(presented by the Commission)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the implementation of a training programme for professionals in the European audiovisual programme industry (MEDIA - Training) (2001-2005)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 150(4) thereof,

Having regard to the proposal from the Commission [5],

[5] OJ C

Having regard to the opinion of the Economic and Social Committee [6],

[6] OJ C

Having regard to the opinion of the Committee of the Regions [7],

[7] OJ C

Acting in accordance with the procedure laid down in Article 251 of the Treat 16 15 14 13 12 11 10 9 [8]

[8]

[9]

[10]

[11]

[12]

[13]

[14]

[15]

[16]

Whereas:

(1) From 6 to 8 April 1998, the Commission, in collaboration with the United Kingdom presidency, held a European audiovisual conference on "Challenges and opportunities of the digital age", in Birmingham. This consultation process highlighted the need for an improved programme of training in the audiovisual sector which concentrated on all the new aspects of the digital age.

(2) The Culture/Audiovisual Council of 28 May 1998 took note of the final conclusions of the European audiovisual conference on "Challenges and opportunities of the digital age" and called for new schemes to be developed to encourage a strong and competitive programme industry.

(3) The Report of the High-Level Group on Audiovisual Policy of 26 October 1998, entitled "The Digital Age: European Audiovisual Policy", concluded that, in this environment, both initial and continuous training in the audiovisual sector should be strengthened.

(4) In the Communication from the Commission to the European Parliament and the Council of Ministers entitled "Audiovisual policy: next steps", the Commission recognises the considerable impact on employment which the digital age will have in the audiovisual industry [17].

[17] COM(1998) 446 final of 14 July 1998.

(5) The Green Paper on "The Convergence of the Telecommunications, Media and Information Technology Sectors, and the Implications for Regulation" recognises that the emergence of new services will lead to the creation of new jobs. Adapting to the new markets requires staff trained in the use of the new technologies [18].

[18] COM(1997) 623 final of 3 December 1997.

(6) The Commission's public consultation on the Green Paper confirmed the demand for specialised vocational training adapted to the needs of the market [19].

[19] SEC(1998) 1284 final of 29 July 1998.

(7) In its Conclusions of 27 September 1999 on the results of the public consultation on the Green Paper [20], the Council called upon the Commission to take account of those results when drawing up proposals for measures to strengthen the European audiovisual sector, including the multimedia sector.

[20] OJ C 283, 6.10.1999, p. 1.

(8) The extraordinary European Council on Employment held in Luxembourg on 20 and 21 November 1997 recognised that continuous education and vocational training can make a major contribution to the employment policies of the Member States with a view to improving suitability for employment, adaptability and the spirit of enterprise, and promoting equality of opportunities.

(9) In its report to the European Council on job opportunities in the information society [21], the Commission noted that the new audiovisual services offered a strong potential for job creation.

[21] COM(1998) 590 final.

(10) The Commission implemented an "Action programme to promote the development of the European audiovisual industry (MEDIA) (1991-1995)", adopted by Council Decision 90/685/EEC [22] and comprising, in particular, support for training activities to improve the professional skills of persons working in the audiovisual programme industry.

[22] OJ L 380, 31.12.1990, p. 37.

(11) The Community strategy for developing and strengthening the European audiovisual industry was confirmed under the MEDIA II programme adopted by Council Decision 95/563/EC [23], and by Council Decision 95/564/EC [24]. On the basis of the achievements of that programme, its continuation should be ensured in the light of the results obtained.

[23] OJ L 321, 30.12.1995, p. 25.

[24] OJ L 321, 30.12.1995, p. 33.

(12) The Commission's report on the results obtained under the MEDIA II (1996-2000) programme, from 1 January 1996 to 30 June 1998, considers that the programme meets the principle of the subsidiarity of Community funds to national funds, since the field of intervention of MEDIA II supplements the traditionally predominant role of the national schemes [25].

[25] COM(1999) 91 final, of 16.03.1999

(13) The Commission recognised the positive impact of the MEDIA II programme on employment in the audiovisual industry in its Communication on Community Policies in Support of Employment [26].

[26] COM (1999) 167 final.

(14) The emergence of a European audiovisual market calls for professional skills adjusted to the new dimension of the market, particularly in the field of the economic, financial and commercial management of audiovisual projects and in the use of the new technologies in the design, development, production, distribution, marketing and broadcasting of programmes.

(15) Professionals should be given the professional skills to allow them to benefit fully from the European and international dimension of the market for audiovisual programmes, and they must be encouraged to develop projects which meet the needs of that market.

(16) Equal opportunities are a basic principle in Community policies which must be taken into account in the implementation of the present programme.

(17) The initial training for professionals should comprise the essential economic, legal and technological content. The rapid changes in these subjects makes continuous training necessary.

(18) The networking of vocational training centres should be encouraged in order to facilitate the exchange of know-how.

(19) Support for vocational training should take account of the structural objectives, such as developing the potential for creation, production, marketing and distribution in countries or regions where the capacity for audiovisual production is low or the linguistic area is limited.

(20) In accordance with the principles of subsidiarity and proportionality set out in Article 5 of the Treaty, and in view of the fact that the objectives of the proposed measures concerning the implementation of vocational training policy cannot be achieved by the Member States, in particular in view of the transnational partnerships to be established between the training centres, the measures necessary to achieve them must be implemented by the Community because of the transnational dimension of the Community measures. This Decision is confined to the minimum required to achieve these objectives and does not go beyond what is needed to achieve these objectives.

(21) The measures proposed under this programme are all aimed at achieving transnational cooperation which brings an added value to the measures being undertaken in the Member States, in accordance with the aforementioned principle of subsidiarity.

(22) The associated countries of Central and Eastern Europe, those EFTA countries which are members of the EEA, Cyprus, Malta and Turkey are recognised as potential participants in Community programmes on the basis of supplementary appropriations and in accordance with the procedures to be agreed with those countries. Those countries of Europe which have signed the transfrontier television Convention of the Council of Europe belong to the European audiovisual area and may therefore, if they wish, and taking into account budgetary considerations or other priorities of their audiovisual industries, participate in the programme or benefit under a limited cooperation scheme, on the basis of the supplementary appropriations, in accordance with the procedures to be established in the agreements between the interested parties.

(23) The opening-up of the programme to European third countries may be submitted to an examination of the compatibility of their national legislation with the Community acquis, and, in particular, the second subparagraph of Article 6(1) of Council Directive 89/552/EEC [27] of 3 October 1989 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities, as amended by European Parliament and Council Directive 97/36/EC [28].

[27] OJ L 298, 17.10.1989, p. 23.

[28] OJ L 202, 30.7.1997, p. 60.

(24) Cooperation in the field of vocational training on the part of the European bodies and those in the third countries, on the basis of common interests, is likely to create an added value for the European audiovisual industry. Such cooperation will be developed on the basis of supplementary appropriations and in accordance with the procedures to be established in the agreements between the interested parties.

(25) In order to enhance the added value of the Community action, it is necessary to ensure, at all levels, that the measures undertaken under this Decision are consistent with and complementary to other Community interventions. It is desirable to coordinate the activities laid down by the programme with those undertaken by international organisations such as the Council of Europe.

(26) This Decision lays down, for the entire duration of the programme, a financial framework constituting the principal point of reference within the meaning of point 1 of the Declaration of the European Parliament, the Council and Commission of 6 March 1995 [29], for the budgetary authority during the annual budgetary procedure;

[29] OJ C 102, 4.4.1996, p. 4.

(27) In accordance with Article 2 of Council Decision 1999/468/EC of 28 June 1999, laying down the procedures for the exercise of implementing powers conferred on the Commission [30], measures for the implementation of this Decision should be adopted by use of the advisory procedure provided for in Article 3 of that Decision.

[30] OJ L 184, 17.7.1999, p. 23.

HAVE DECIDED AS FOLLOWS:

Article 1

A vocational training programme, hereinafter referred to as "the programme", is hereby established for the period from 1 January 2001 to 31 December 2005.

The programme is intended to give professionals in the audiovisual industry the necessary skills to allow them to take full advantage of the European and international dimension of the market and of the use of new technologies.

Article 2

1. The objectives of the programme are as follows:

(a) To meet the industry's needs and promote competitiveness by improving the continuous vocational training of professionals in the audiovisual industry, with a view to giving them the know-how and skills needed to take account of the European and other markets, in particular in the field of:

- application of the new technologies, and in particular digital technologies, for the production of audiovisual programmes with a high commercial and artistic added value;

- economic, financial and commercial management, including the legal framework and the techniques for the financing, production and distribution of audiovisual programmes;

- script-writing techniques.

Particular attention will be paid to the opportunities for distance learning and pedagogic innovation offered by the development of on-line technologies.

Certain initial training measures in which the industrial sector is directly involved, such as masters' degrees, may also be supported if no other Community support is available and in fields for which there are no support measures at national level.

(b) To encourage cooperation and the exchange of know-how through networking between the partners involved in the training, such as training establishments, the professional sector and undertakings, as well as through developing training for the trainers.

Particular importance will be attached to encouraging the gradual establishment of networks between the activities and the existing training establishments.

2. To achieve the objectives set out in the first paragraph of point (a) and in point (b) of paragraph 1, particular attention shall be devoted to the specific needs of countries or regions with a low production capacity and/or a restricted geographical and linguistic area, as well as to the development of an independent European production and distribution sector, and in particular small and medium-sized enterprises.

3. The objectives set out in paragraph 1 shall be realised in accordance with the arrangements contained in the Annex.

Article 3

In order to achieve maximum coordination, the Commission will ensure that there is collaboration between the training activities and the development projects supported under the MEDIA Plus programme. In this context, information about the support mechanisms provided by the programme shall be given to the professionals taking part in the continuous training activities.

Article 4

1. The beneficiaries of Community support taking part in implementing the actions set out in the Annex shall provide a substantial proportion of the funding, equivalent to at least 50%, subject to the specific provisions set out in the Annex.

2. The beneficiaries of Community support shall ensure that a majority of the participants in a training measure are of a nationality other than that of the country in which the training takes place.

3. The Commission shall ensure that, as far as possible, at least 10% of the funding available each year is reserved for new activities.

4. Community funding shall be determined according to the costs and nature of each project planned.

5. The financial framework for implementing this programme for the period set out in Article 1 shall be EUR 50 million.

6. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspectives.

Article 5

The Commission shall be responsible for implementing the programme, in accordance with the procedures referred to in Article 6(2) and with the rules contained in the Annex.

Article 6

1. The Commission shall be assisted by an advisory committee ("the MEDIA Committee") composed of representatives of the Member States and chaired by the representative of the Commission.

2. Where reference is made to this paragraph, the advisory procedure laid down in Article 3 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) and Article 8 thereof.

Article 7

1. The programme shall be open to the participation of the associated countries of Central and Eastern Europe, in accordance with the conditions laid down in the association agreements or their additional protocols relating to participation in Community programmes concluded or to be concluded with those countries.

2. The programme shall be open to the participation of Cyprus, Malta, Turkey and those EFTA countries which are members of the EEA Agreement, on the basis of supplementary appropriations, in accordance with the procedures to be agreed with those countries.

3. The programme shall be open to the participation of the countries which are Parties to the Council of Europe Convention on Transfrontier Television, other than those referred to in paragraphs 1 and 2, on the basis of supplementary appropriations, in accordance with the conditions to be established in the agreements between the interested parties.

4. The opening-up of the programme to the European third countries referred to in paragraphs 1, 2 and 3 may be subject to a prior examination as to the compatibility of their national legislation with the Community acquis, including the second subparagraph of Article 6(1), of Directive 89/552/EEC.

5. The programme shall also be open to the participation of other third countries on the basis of supplementary appropriations and the specific arrangement to be established in the agreement between the interested parties. The European third countries referred to in paragraph 3 which do not wish to participate fully in the programme may be eligible for cooperation under the conditions set out in this paragraph.

Article 8

1. The Commission shall ensure that measures taken under this Decision are subject to prior appraisal, and to subsequent monitoring and evaluation.

2. The beneficiaries selected shall submit an annual report to the Commission.

3. After completion of the projects, the Commission shall evaluate the manner in which they have been carried out and the impact of their implementation, in order to assess whether the original objectives have been achieved.

4. The Commission shall present to the European Parliament, the Council, the Economic and Social Committee, and the Committee of the Regions an evaluation report on the impact and effectiveness of the programme, on the basis of the results after two years of implementation.

This report shall be accompanied, if need be, by any proposal regarding adjustment, including budgetary adjustments.

5. On completion of the programme, the Commission shall present to the European Parliament, the Council, the Economic and Social Committee, and the Committee of the Regions a report on the implementation and results of the programme.

Article 9

This Decision shall enter into force on 1 January 2001.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX

1. MEASURES TO BE IMPLEMENTED

In support of and in addition to the measures being undertaken by the Member States, the programme aims to permit professionals to adapt to the dimension of the market, and in particular the European market, for audiovisual works, by promoting vocational training in economic, financial and commercial management, including the legal framework, distribution and marketing, as well as in the new technologies (including the conservation and exploitation of the European film and audiovisual heritage) and script-writing techniques.

1.1. Training in the new technologies

This training aims to develop the ability of professionals to use advanced creation techniques, in particular in the fields of animation, computer graphics, multimedia and interactive applications.

The measures proposed are as follows:

· promoting the development and updating of the modules for training in the new audiovisual technologies, in parallel to the measures being taken by the Member States;

· networking the training courses, promoting exchanges of instructors and professionals by awarding grants, organising work experience in undertakings in other Member States and contributing to the training of trainers, particularly through distance learning, by promoting exchanges and partnerships involving the regions with a low production capacity and/or a limited geographical and linguistic area.

1.2. Training in economic, financial and commercial management

This training aims to develop the ability of professionals to appreciate and use the European dimension in the development, production, marketing and distribution/dissemination of audiovisual programmes.

The measures proposed are as follows:

· promoting the development and updating of the modules for training in management, in parallel to the measures being taken by the Member States and emphasising the European dimension;

· networking the training courses, promoting exchanges of instructors and professionals by awarding grants, organising work experience in undertakings in other Member States and contributing to the training of trainers, particularly through distance learning, by promoting exchanges and partnerships involving the regions with a low production capacity and/or a limited geographical and linguistic area.

1.3. Script-writing techniques

This training is intended for experienced script-writers with a view to improving their ability to develop techniques based on both conventional and interactive script-writing methods.

The measures will be as follows:

· promoting the development and updating of the training modules for identifying target audiences; publication and development of scripts for an international audience; relations between the script-writer, the script editor, the producer and the distributor;

· encouraging exchanges and partnerships between countries and regions with a low production capacity and/or a limited linguistic and/or geographical area.

1.4. Networks of training courses

The objective is to encourage existing institutions and/or measures to step up coordination of their activities in order to establish European networks.

1.5. Initial training activities

Support may be provided for activities in some fields of initial training where no Community or national funding is on offer. Such activities may include master's degrees in which there is a link with industry in the form of a partnership and/or work experience.

2. IMPLEMENTATION PROCEDURE

2.1. Approach

In implementing the programme, the Commission will work closely with the Member States. It will also consult the partners concerned. It will ensure that the participation of professionals reflects adequately Europe's cultural diversity.

It will encourage designers of training modules to cooperate with institutions, the professional sector and undertakings in their work.

It will facilitate the presence of trainees, particularly from countries and regions with a low production capacity and/or a restricted linguistic and geographical area.

2.2. Community contribution

Community cofinancing of the total training costs will be provided within a framework of joint funding with public and/or private partners, generally up to a limit of 50%. This share may be raised to 60% for training activities in countries or regions with a low production capacity and/or a restricted linguistic and geographical area.

The procedure set out in Article 6(2) will be applied to determine the allocation of funding for each type of measure eligible under point 1.

In accordance with the rules for Community funding, and in application of the procedure set out in Article 6(2), the Commission will lay down a set of rules for funding in order to determine the ceiling for each continuous training activity and professional trained.

Designers of modules and training centres using them will be selected by calls for proposals.

As far as possible, the Commission will ensure that at least 10% of the funds available each year are allocated to new activities.

Implementation

2.3.1 The Commission shall implement the programme. To this end, it may call upon consultants and technical assistance offices to be selected, after a call for proposals, on the basis of their expertise in the sector. The technical assistance will be financed by the programme's budget. In accordance with the procedure referred to in Article 6(2), the Commission may also conclude partnerships for ad hoc operations with specialised bodies such as Audiovisual Eureka, in order to implement joint measures which meet the objectives of the programme in the field of training.

The Commission shall make the final selection of the beneficiaries of the programme and shall decide on the financial support to be granted, in accordance with Article 5.

For the implementation of the programme, and in particular the assessment of the projects receiving funding under the programme, and for the networking measures, the Commission shall ensure that it makes use of the skills of recognised experts in the audiovisual sector in the fields of training, development, production, distribution and promotion.

2.3.2 Through appropriate measures, the Commission shall make known the opportunities offered by the programme and ensure its promotion.

In particular, the Commission and the Member States shall take the necessary measures, by continuing the activities of the network of MEDIA Desks and Antennae, and by ensuring that the skills of the latter are strengthened, in order to:

· ensure that the programme is publicised and promoted;

· encourage the greatest possible participation of professionals in the measures under the programme;

· assist professionals in presenting their projects in response to calls for proposals;

· foster transfrontier cooperation between professionals;

· act as a relay between the various support bodies in the Member States with a view to ensuring that the measures under this programme are complementary to the national support measures.

FINANCIAL STATEMENT

1. TITLE OF OPERATION

Training programme for professionals in the European audiovisual programme industry (MEDIA Plus).

2. BUDGET HEADING(S) INVOLVED

B 3 2010

3. LEGAL BASIS

Article 150 of the Treaty establishing the European Community

4. DESCRIPTION OF OPERATION

4.1 General objective

The development of digital technologies is spawning rapid growth in the range of audiovisual programme on offer. The developments expected in the content industry will generate employment only if the professionals in the sector have qualifications which are in tune with the needs of the market. Similarly, the support mechanisms for the audiovisual industry can be fully effective only if they are underpinned by skills geared to meeting new challenges.

Occupational training nowadays goes beyond the school-education and academic spheres. The relentless pace of change in the economic and technological environment makes it essential to bolster the provision of continuous training throughout professional life.

The objectives set out in Article 150 of the Treaty recognise the importance attaching to the European Union's training policy.

4.2 Period covered by the operation and arrangements for renewal

The MEDIA Plus Training Programme covers the period from 1 January 2001 to 31 January 2005. Its possible renewal will be the subject of a new decision-making process based on the provisions set out in the Treaty.

5. CLASSIFICATION OF EXPENDITURE OR REVENUE

5.1 Non-compulsory expenditure

5.2 Differentiated appropriations

5.3 N/A

6. TYPE OF EXPENDITURE OR REVENUE

- Subsidy for joint financing with other sources in the public and/or private sector.

- No repayment or supplementary revenue is expected.

The Community will make a financial contribution towards training activities of up to 50% (60% for training courses held in countries or regions having a low audiovisual production capacity and/or restricted geographical and linguistic area) of actual project costs, subject to a ceiling of one million euro per training centre per year. Financial contributions will be awarded by means of contracts having a maximum term of three years.

7. FINANCIAL IMPACT

7.1 Method of calculating total cost of operation

The amounts were determined on the basis of two data sources:

(1) The data available from the implementation of the MEDIA II Programme (databases with figures broken down by sector of activity and by line of action). These figures are derived from actual files submitted by tenderers (representing at least 50% of the professionals in the sector).

(2) Data contained in the following documents: proceedings of conferences on the audiovisual media (European Audiovisual Conference in Birmingham, Helsinki Forum on Audiovisual Policy), Report of the High-level Group on Audiovisual Policy (Oreja Group), Mid-term Assessment of the MEDIA II Programme (BIPE), Commission documents (Green Paper on Convergence, Communication on the next steps in audiovisual policy), etc. These documents, which incorporate macro-economic analyses, contain figures relating to the sectoral needs of the European audiovisual industry.

In the implementation of the programme over the entire five-year period, the expenditure required in the first and the fourth year will be higher, as it will be for projects running two or three years. The expenditure envisaged for the other three years will be used to finance projects of shorter duration.

The proportion of the budget devoted, respectively, to "management", "new technologies" and "script-writing techniques" will depend in each case on the cost of the operation and the proposals received in response to calls for proposals. The amounts given in this Financial Statement represent the total cost of Community involvement, i.e. at most 60% of the actual cost of operation.

7.2 Itemised breakdown of cost

Commitment appropriations

EUR million (current prices)

>TABLE POSITION>

In order to support training schemes running for two or three years, the amounts allocated for the years 2001 and 2004 are higher than those for the other years, during which projects of a shorter duration will be selected.

Actions vis-à-vis the sector

Commitment appropriations

EUR million (current prices)

>TABLE POSITION>

7.3 Operating costs, technical assistance, included in Part B of the budget

Commitment appropriations

EUR million (current prices)

>TABLE POSITION>

In order to conduct a selection among the proposals and to assist in the follow-up, the Commission envisages calling upon external technical and/or administrative assistance. In the framework of the MEDIA II and MEDIA I programmes, the Commission was assisted by TAOs (Technical Assistance Offices) with expertise in the areas covered by the programme. The type of external technical and/or administrative assistance used for the implementation of the present programme will be determined in accordance with the guidelines established by the Commission. If TAOs were to be used for the establishment of the present programme, the College will be duly informed in accordance with the Vademecum concerning Technical Assistance Offices.

7.4 Indicative schedule of commitment/payment appropriations

Commitment appropriations

EUR million

>TABLE POSITION>

8. FRAUD PREVENTION MEASURES

Programme beneficiaries are selected by way of a call for proposals procedure published several times a year in the Official Journal of the European Communities. Before approving a request for Community support, the Commission conducts a careful assessment to determine whether it complies with Council Decisions and meets the conditions set out in the call for proposals.

Applications for Community support must include:

- a financial plan setting out in detail all the components in the financing of the projects, including the support applied for from the Commission;

- a provisional timetable of work;

- any other relevant information requested by the Commission in the specifications set out in the call for proposals.

To make its selection from among the proposals, the Commission consults TAOs (Technical Assistance Offices) with expertise in the areas covered by the Programme. Projects judged eligible are first submitted to independent experts and then to the MEDIA committee, which is made up of representatives of the countries participating in the Programme, before the final decision is taken by the European Commission. Above certain thresholds set out in the Decisions setting up the Programme, the projects selected are submitted to the committee for its opinion.

Payment of financial contributions is subject to the prior production of supporting documents for the activity reports, as well as to on-site checking (audit) and central monitoring.

Moreover, various bodies (Court of Auditors, Financial Control and authorising officer) carry out checks on the management of the operations carried out and on the beneficiaries.

9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

9.1 Specific and quantified objectives, target population

The main objective is to upgrade the skills of European professionals in the audiovisual industry through enhanced mastery of management tools, increased focus on global markets and the European dimension in the various professions and, finally, by dint of specific training in the use of new technologies. The expected dividend, therefore, is greater competitiveness on the part of European audiovisual enterprises.

In particular, MEDIA operation are aimed at remedying:

- the lack of commercial and legal training among managerial staff and the lack of market focus which have long characterised part of Europe's industrial fabric;

- the insufficient focus on the European dimension in the development of projects and of enterprises;

- the fragmentation of enterprises which means that adequate budgets cannot be provided for training;

- the inadequate training given in new digital technologies.

Target population:

The beneficiaries of the operations to be undertaken fall into various categories: professionals, trainers and enterprises. The sectors affected by the training operations are management, script-writing and new technologies. The operations conducted should translate, at European market level, into the generation of highly-skilled jobs, the maintenance of a high-performance business fabric at European level, and the incorporation of a European dimension into initial training programmes.

9.2 Grounds for the operation

Need for Community financial aid, particularly in the light of the principle of subsidiarity:

The proposed support programme is in line with the European Union's audiovisual policy.

It operates according to the principle of subsidiarity and is designed to complement national initiatives. It thus underpins and rounds off operations undertaken at national level. It meets the objectives set out in the Treaty, particularly the stipulation in Article 150 that Community action shall aim to :

- facilitate adaptation to industrial change;

- improve initial and continuing vocational training;

- stimulate cooperation on training between educational or training establishments and firms;

- choice of ways and means.

The funds provided by the Community in the form of subsidies of up to 50% of the cost of training courses held (60% for those held in countries or regions having a low audiovisual production capacity and/or a restricted geographical and linguistic area) are intended to give national/regional partners an incentive to supplement existing training.

The Commission report on the results obtained under the MEDIA II Programme over the period 1 January 1996 to 30 June 1998 stresses that the training courses held under the MEDIA Programme "are meeting a real need in the European audiovisual industry in both their content and in their international nature. (...) Finally, they have enabled genuine networks of European professionals to be formed, facilitating joint productions and sales, resulting in some cases in permanent partnerships".

9.3 Monitoring and evaluation of the operation

Performance indicators:

Initial training:

- number of course participants;

- number of non-domestics participating;

- number of training bodies involved in the network (per training project).

Continuous training:

- number of course participants;

- number of non-domestics participating;

- number of projects at the development stage dealt with during training;

- number of projects developed after training (and which were at the development stage during training);

- number of itinerant courses.

The Commission monitors the most pertinent indicators throughout the implementation of the programme. For the contracts established with the Commission, the beneficiaries of financial support will have to provide the relevant information so as to allow the continuous, half term and ex-post evaluation.

Details and frequency of planned evaluation:

The Commission will draw up two Programme evaluation reports.

Mid-term report: The first report will be drawn up two years after the start of the Programme. It will set out to produce an initial assessment of the results obtained by the mid-term stage with a view to making any necessary changes and adjustments for the second part of the Programme. To this end, the Commission may call upon the services of external consultants who will be selected on the basis of their expertise by means of an invitation to tender. The Commission's report will be submitted to the European Parliament, the Council and the Economic and Social Committee.

Final report: The second report will be drawn up at the end of the five years of Programme implementation. It will set out to evaluate the results of the support systems in the light of the objectives of the Programme. As in the case of the mid-term report, the Commission may involve external consultants in this exercise, and the final report will likewise be submitted to the European Parliament, the Council and the Economic and Social Committee.

Moreover, the Commission plans, on the basis of the experience gained under the MEDIA II Programme, to continue the practice of auditing beneficiaries (approximately 30 per year) in order to verify whether Community funds are being put to appropriate use. The results of the audits will be the subject of a written report.

Assessment of the results obtained:

Information enabling the performance, results and impact of the Programme to be measured will be derived from the following sources:

- statistical data compiled on the basis of information from applications and the monitoring of the contracts with the beneficiaries;

- audit reports on a sample of beneficiaries of the Programme (30 per year);

- consultations with MEDIA Desks and Antennae and on national markets;

- consultations with experts and institutions (national and international professional associations);

- consultations with audiovisual professionals and with specialised training bodies.

10. ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)

This section of the financial statement must be sent simultaneously to DGs BUDG and ADMIN; the latter will then forward it to DG BUDG with its opinion.

Actual mobilisation of the necessary administrative resources will depend on the Commission's annual decision on the allocation of resources, taking particular account of the number of staff and additional amounts authorised by the budgetary authority.

10.1 Effect on the number of posts

>TABLE POSITION>

The administrative resources required may actually be mobilised in the framework of the annual Commission decision on the allocation of resources, taking into account in particular additional resources authorised by the budgetary authority.

Accordingly, DG EAC should take into account the risk that the budget authority, after the Council having adopted the legislative proposal in question, does not grant the Commission the necessary additional human resources. In that case, if no redeployment from other Commission services were possible, DG EAC would have to meet the related needs in term of human resources by internal redeployment exclusively.

10.2 Overall financial impact of additional human resources

Per year in EUR

>TABLE POSITION>

The amounts express the total cost of the additional posts for the total length of the operation if it is of a specific duration, of for 12 months if it is of unspecified duration.

10.3 Increase in other management expenditures resulting from the action, notably expenditures for meetings and expert panels (EUR)

>TABLE POSITION>

The expenses relating to heading A-7 appearing in point 10 will be covered by the overall credits for DG EAC.

EXPLANATORY MEMORANDUM

Programme to encourage the development, distribution and promotion of European audiovisual works

1. Introduction

The development of methods of dissemination, particularly those involving digital technologies, presents a new challenge to the European sector engaged in the production and distribution of audiovisual programmes, in that it is gradually changing the economics of the sector. Thus, the share of revenue generated by pay and pay-per-view television services rose by more than 200% between 1988 and 1998, although the proportion stemming from "traditional" methods of dissemination (cinema, video, television) still represents 87% of overall income in by the audiovisual sector.

It has to be borne in mind, however, that digital TV channels have not yet replaced other audiovisual dissemination methods to any significant extent. Indeed, quite the reverse has been true in the cinema and video sectors (particularly on the sales side). Cinema attendance increased by almost 38% between 1988 and 1998, with almost 7% of that rise occurring between 1997 and 1998. At the same time, the video market has grown by 34% since 1992, with a rise of 10% between 1997 and 1998.

The proliferation and diversity of dissemination methods has led to a significant rise in demand for audiovisual programmes, thus enhancing the commercial potential of each individual production. However, audience fragmentation reduces the relative financing capability of each channel. Moreover, against a backdrop of heightened competition to capture the attention and purchasing power of viewers/consumers, new channels are focusing their resources in particular on acquiring products which are attractive but have a short exploitation time, e.g. sports events, games or entertainment programmes, making it more difficult to put together the finance required for creative works such as films and dramas, documentaries and animated works. Such productions are of strategic importance, however, as they lend themselves in particular to multiple dissemination over a long period. It is on the basis of such "staple" productions that long-term marketing and exploitation can develop.

The audiovisual sector is in the process of developing from a short-term economy focused on national markets into a medium- to long-term economy geared to the international marketplace.

The European programme industry must be able to seize the opportunities opened up by the development of digital channels and methods of exploitation by taking due account, in all its strategic considerations, of the international dimension to the market. There is a serious risk that the domination of the European market by imported programmes, particularly American ones, will extend and increase with the new dissemination methods.

In this context, it is essential that operators be enabled to adopt an international development strategy throughout the production and distribution chain. In accordance with the principle of subsidiarity, the Community takes action only if and in so far as the objectives of the proposed action cannot be adequately achieved by the Member States and can therefore, by reason of the scale or effects of the proposed action, be achieved at Community level. Given the results of the consultations conducted since 1997, and in particular the conclusions of the Birmingham Conference, the selected course of Community action (development, distribution and promotion) is to support and supplement the action of the Member States, whose own support to the industry is focused on the production side.

2. The situation

2.1 Lack of investment in development

The development of an audiovisual work represents a key phase and is the determining factor for the decision as to whether the work should be produced or not. The development process comprises three essential elements: conception of the work (particularly the writing of the script), the search for (industrial, technical, artistic and financial) partners, and the establishment of the marketing plan. The development phase consists of specifying the details of project so as to facilitate evaluation of:

· production feasibility;

· the commercial potential of the product;

· the cost and return on investment.

Too many projects in Europe enter production at the end of an inadequate development phase. Put another way, they enter production without have benefited from sufficient investment at the development stage, and this hampers their marketability and economic viability. Average investment by the European audiovisual industry in project development is less than 5% of that in production, compared with 10% for the United States.

This under-investment upstream translates at the production stage into a work that is less attractive for potential distributors and broadcasters, which in turn means a lack of investment in promotion and distribution, resulting in lower profitability. This vicious circle, exacerbated by the under-capitalisation of companies, perpetuates the weakness of the industry's development strategy.

It is becoming essential for producers to take into account right from the development stage a clear strategy for marketing and distributing the finished product in as many countries and using as many media as possible. Moreover, this strategy must intermesh with a major distribution and promotion effort geared to achieving optimum exploitation of the work and achieving high revenue.

2.2 Obstacles to the transnational distribution of works

Most European markets are currently characterised by a double "bi-polarisation":

· Television programming mainly comprises programmes of national or American origin; generally speaking, works of national origin predominate. On the drama side, American productions account for 74% of programme imports in volume terms, compared with 14% originating from other European countries.

· The cinema is dominated to varying degrees (from 60 to 95%) by works of American origin, with the remaining market shares being taken mainly by nationally produced films. Of the 550 cinema films produced annually in Europe, barely 20% are distributed outside their principal country of production; this represents barely 7% of the market.

The consultations conducted since 1997 in the context of the EU audiovisual policy review exercise have underlined, across the board, that Europe's biggest weakness lies in the low circulation of non-domestic films and audiovisual programmes, which erodes the profitability of these works and hinders the generation of revenue that could be ploughed back into the production of new works.

Various underlying factors can be cited to explain this situation. First of all, the European marketplace has traditionally been split up into national/language markets. National and European works are distributed by a large number of companies operating in one and the same country, which often sustains only a small market. Moreover, these companies are under-capitalised, and are hard-pressed to keep pace with the constantly rising financial investment that is needed to promote and publicise the works which they distribute. Finally, few of them have the resources to engage in investment upstream of distribution in the form of pre-purchases of distribution/dissemination rights and thus take an active part in financing productions with high commercial potential.

Cooperation agreements and co-ordinated distribution strategies at European level are still a rarity. They are nevertheless essential in the face of competition from far better structured major companies and the growing internationalisation of transnational dissemination methods, such as DVD video and international television channels. This necessary adaptation must, however, take account of the fundamental role played by audiovisual content in cultural and social terms. This contents must be accessible to all citizens, while respecting the cultural and linguistic diversity with which Europe is so richly endowed.

2.3 Absence of a European image

The fragmentation of the production and distribution sector into a large number of often under-capitalised small companies operating chiefly at national level also makes it difficult for these companies to gain access to international trade events in the sector (in Europe and beyond), given the high cost of participating. There are professional initiatives and associations in the Member States which put together logistical support packages for such events, as well as providing assistance in promoting national works. The visibility and impact of such activities, however, should be underpinned by better cooperation designed to exploit European productions overall.

3. Guidelines for European action

3.1 General principles

The experience gained under the MEDIA I and MEDIA II programmes and the assessments of the results obtained have made it possible to establish general principles intended to provide guidance in the implementation of financial support mechanisms at European level:

· strengthening of support mechanisms geared more towards structural funding, depending on operators' commitments to medium-term objectives;

· setting-up of new, complementary mechanisms promoting the development of projects using digital technologies at the production or dissemination stage;

· integrated approach making due allowance, by means of "positive discrimination" mechanisms, for the structural handicaps experienced by countries having a low audiovisual production capacity and/or restricted geographical and linguistic area.

The procedures for granting support are geared mainly towards mechanisms for direct intervention in the market and mechanisms for support in step with market developments.

1. Project support is granted mainly on the basis of financial incentive mechanisms encouraging the financial co-responsibility of the professional sector (conditionally repayable loans);

2. Stepped-up support for companies aimed at bolstering their medium- to long-term strategy: support granted automatically or on the basis of companies' performance in the marketplace, and support to companies submitting packages of projects (slate-funding).

3.2 Development sector

Given the specific features and requirements of the market, there is a need to stimulate greater investment by the industry in the development phase of audiovisual works, with the emphasis on projects which are targeted at the European and international markets and offer the best prospects for commercial success.

Similarly, the most dynamic production companies need incentives to implement medium-term strategies for the development of their productions.

Particular attention should be paid to production projects using new creative technologies, and also to the inclusion right from the development stage of all the dissemination methods which could be used for commercial exploitation of the work.

The mechanisms put in place will have to accommodate all types of audiovisual works: drama productions, films, documentaries, animation, interactive products (on-line, off-line, hybrids).

Priority operations:

Two types of operation are planned:

· co-financing of the development of individual projects (script-writing, search for financial and artistic partners, assessment and marketing studies) put forward by European producers;

· co-financing of the medium-term strategies pursued by high-performance companies for the development of "project packages" (slate-funding)

3.3 Distribution sector

Over the medium to long term, the development of new dissemination methods based on digital technologies is destined to change the distribution structures for audiovisual productions, in particular by reducing the bottlenecks caused by the cost of the requisite investment for the physical distribution of products (printing, storage and transport of copies of cinema films or video cassettes, for example). This may enhance the scope for a wider range of works to gain access to the market.

Set against a backdrop of heightened competition to capture the viewer's/consumer's attention, however, the requisite investment will focus increasingly on advertising and marketing.

Optimum commercial exploitation of productions on all media requires major investment at the beginning of the exploitation phase in order to maintain public interest over the entire exploitation cycle. In particular, ever greater efforts are necessary when cinematographic films are released for screening, since the profile and success of a film in the cinema determines the revenue generated by exploitation of the film on other media (video, DVD, sales to television).

The lengthening of exploitation cycles, the fragmentation of revenues over a growing number of dissemination methods and the need for considerable investment in promotion and advertising call for the development of a distribution sector which is capable of:

· making the investment needed to promote and ensure the market success of European works on various media;

· compiling competitive catalogues of European works for exploitation on the international market;

· contributing towards the financing of new works.

Against this background, it is appropriate to encourage investment in distribution and promotion on various types of media, from cinema screening to on-line distribution, and to encourage the development of cooperative ventures and the structuring of distribution at European level.

The economic structures of distribution companies need to be strengthened, with priority being given to those companies which have the potential for development on the European and international markets and put forward long-term strategies.

Priority operations:

(a) Film distribution:

Selective support: a system of support in the form of conditionally repayable loans for film distributors who distribute European cinema works outside their country of production.

This system makes it possible to:

· network European distributors, in cooperation with international producers and distributors, so as to promote common strategies on the European market;

· encourage distributors to invest adequate amounts in the promotion and distribution of European films, whatever their production budget;

· support multilingualism in European works (dubbing, subtitling and multilingual production).

Support for the production of international sound tracks (music and effects) for European films: appropriate support for the production of international sound tracks (music and effects) for European films with strong dissemination potential, aimed at facilitating exploitation of the work in numerous countries and the production of high-quality versions in various languages.

Automatic support: a system of automatic support for European distributors proportionate to cinema attendance for non-domestic European films shown in the countries participating in the Programme, up to an upper limit per film and graded according to country (corrective mechanism for smaller countries).

Distributors can use this support solely for the purpose of investing in:

· the acquisition of non-domestic European films;

· editing-related work (copying, dubbing and subtitling), promotion and advertising for non-domestic European films.

Support for sales agents: a system of support for European companies engaged in the international distribution of cinema films (sales agents), the level of support being determined according to their market performance over a given period. Distributors may use this support solely for the purpose of investing in promotion, or for investing, including at the production stage, in new European works for the European and international market.

Support for cinemas: an appropriate level of support designed to encourage exhibitors to include in their screening schedules a significant showing of non-domestic European films in commercial first-appearance cinemas for a minimum period of screening. The support granted to each cinema may be determined, in particular, by the attendances achieved by the cinemas for non-domestic European films over a fixed reference period. Support may also be granted to encourage the creation and consolidation of European operator networks to devise joint measures in favour of such scheduling. Finally, particular attention will be paid to cinemas which engage in awareness-raising and educational activities aimed at young audiences.

(b) Off-line distribution:

This term designates the distribution of European works on media intended for private use.

Automatic support: a system of automatic support for European publishers and distributors according to their market performance over a given period. Distributors can use this support solely for the purpose of investing in:

· the publication, distribution and promotion of non-domestic European works using new technologies (such as DVD), particularly at European level;

· the advertising and promotion of new non-domestic European works published by them;

(c) Television broadcasting:

Here, the aim is to encourage independent producers to produce works (dramas, documentaries and animation productions) involving at least three broadcasters from several Member States belonging to different language areas. The criteria applied in selecting the beneficiaries may include provisions to distinguish between projects according to budget category. Particular attention will be paid to audiovisual works which are likely to raise the profile of European heritage and cultural diversity.

(d) On-line distribution:

This term designates the distribution of European works on-line using advanced distribution services and new media (Internet, video-on-demand, pay-per-view). The aim is to facilitate consumer access to Europe's audiovisual heritage by means of new technologies and advanced distribution services.

Support for catalogues: by providing incentives for the marketing of rights to works and for the dubbing/sub-titling of productions, this support is designed to encourage European publishing and distribution companies to create and exploit catalogues of European works in digital formal for commercial exploitation using new methods of dissemination.

3.4 Promotion and market access sector

The specific objectives of promotional aid generally intermesh with those of aid for distribution. However, there is a need for mechanisms which supplement those in place on the distribution side by granting subsidies tointermediate service providers (organisers of markets, festivals, etc.) so as to enable them to improve access for European works and programmes to the European and international markets.

The mechanisms must be geared to encouraging:

· the presence of European audiovisual professionals and programmes on the traditional markets, as well as on emerging European and international markets;

· the participation of European audiovisual professionals and programmes in all activities aimed at promoting the movement, exchange and sale of European programmes inside and outside Europe;

· the inclusion of European audiovisual works in European and international events and/or festivals;

· the networking of professionals and national associations at European level in order to optimise resources.

In parallel with promotion and market access measures, a specific measure is planned in favour of film festivals. Where they are open to the general public, these events give European films a "showcase" to attract cinema-goers, as well as providing a forum at which to promote productions vis-à-vis potential distributors in the country concerned. European support must also be aimed at networking, exchanging information and experience, and implementing measures common to these festivals.

Priority actions:

1. Improving the conditions for access by professionals to European and international markets by means of specific technical and financial assistance measures in the context of events such as:

· the main European and international markets for films and audiovisual programmes;

· the thematic markets, especially those for animated films, documentary films, multimedia the new technologies.

2. Promoting the use of databases and any other tools suitable for exchanging information and experience relating to the exploitation of catalogues of European programmes.

3. In the field of festivals:

· supporting audiovisual festivals which are carried out in partnership and feature a significant proportion of European works;

· encouraging projects for cooperation with a European dimension between audiovisual events involving at least eight Member States with a joint plan of action to promote European audiovisual works and their movement;

· promoting the setting-up by professionals, in close cooperation with Member States, of a major event to spotlight European cinematographic and audiovisual creativity.

3.5 Pilot projects

Current and expected developments in the field of the digital technologies mean that a flexible policy needs to be drawn up which is in step with a changing marketplace and takes due account of the growing content requirements of television channels broadcast as part of digital bouquets.

In order to ensure that the needs of industry dovetail with technological developments and programme mechanisms, pilot projects will be organised throughout the programme so as to promote conditions in which companies in the audiovisual content sector can seize the best opportunities offered by new production and dissemination services.

Priority actions

· Pilot projects, aimed in particular at exploiting the cinematographic heritage, digitising European audiovisual programme archives, and networking holders of rights to catalogues of European audiovisual works.

· Pilot project aimed at promoting the dissemination of European works by thematic digital audiovisual channels and services. In the first year of the programme, this project will be the subject of a feasibility study to determine possible arrangements for this support mechanism, with a view to establishing the conditions for its operational application starting from the second year of the programme.