10. European films
A5-0351/2001
European Parliament resolution on achieving better circulation of European films in the internal
market and the candidate countries (2001/2342 (INI))
The European Parliament,
/dash having regard to Articles157 and 151 of the EC Treaty,
/dash having regard to the Commission’s Green Paper ‘Strategy options to strengthen the European pro-
gramme industry in the context of the audiovisual policy of the European Union’ (COM(1994)96),
/dash having regard to Council Decision 2000/821/EC of 20 December 2000 on the implementation of a
programme to encourage the development, distribution and promotion of European audiovisual works(MEDIA Plus /dash Development, Distribution and Promotion) (2001-2005)(
1),
/dash having regard to Decision No 163/2001/EC of the European Parliament and of the Council of
19 January 2001 on the implementation of a training programme for professionals in the Europeanaudiovisual programme industry (MEDIA-Training) (2001-2005)(
2),
/dash having regard to Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain
provisions laid down by law, regulation or administrative action in Member States concerning thepursuit of television broadcasting activities(
3) and Directive 97/36/EC of the European Parliament
and of the Council of 30 June 1997 amending Council Directive 89/552/EEC on the coordination ofcertain provisions laid down by law, regulation or administrative action in Member States concerningthe pursuit of television broadcasting activities(
4),
/dash having regard to the Conclusions of the Lisbon European Council of 23/24 March 2000,
/dash having regard to the communication from the Commission to the Council, the European Parliament,
the Economic and Social Committee and the Committee of the Regions /dash principles and guidelinesfor the Community’s audiovisual policy in the digital age (COM(1999)657),
/dash having regard to the conclusions of the Council of 16 May 2000 on the principles and guidelines for
audiovisual policy,
/dash having regard to its resolution of 6 September 2000 on the communication from the Commission on
principles and guidelines for the Community’s audiovisual policy in the digital age(
5),
/dash having regard to the report by the think-tank on the audiovisual policy in the European Union(6),
/dash having regard to the results of the European Audiovisual Conference of 6 to 8 April 1998 in Bir-
mingham,
/dash having regard to the First and Second Information Reports of the Commission on the European film
industry (‘The European Film Industry under Analysis’)(7),
/dash having regard to the report by the Commission on the results achieved under the MEDIA II pro-
gramme (1996-2000) between 1 January 1996 and 30 June 1998,
/dash having regard to the Council resolution of 12 February 2001 on national support for film and the
audiovisual industry(8),
(1) OJ L 336, 30.12.2000, p. 82, corrected in OJ L 13, 17.1.2001, p. 34.
(2) OJ L 26, 27.1.2001, p. 1.
(3) OJ L 298, 17.10.1989, p. 23.
(4) OJ L 202, 30.7.1997, p. 60.
(5) OJ C 135, 7.5.2001, p. 181.
(6) Office for Official Publications of the European Communities, Luxembourg, 1994.
(7) European Commission, DG X, Brussels, 11.11.1996 and 23.10.1997.
(8) OJ C 73, 6.3.2001, p. 3.13.6.2002 EN C140E/143 Official Journal of the European Communities
Tuesday 13 November 2001
/dash having regard to the communication from the Commission to the Council, the European Parliament,
the Economic and Social Committee and the Committee of the Regions on certain legal aspects relat-ing to cinematographic and other audiovisual works (COM(2001)534),
/dash having regard to the numerous statistics and other data supplied by Eurostat, the European Audiovis-
ual Observatory, Media Salles and the Research and Information Centre on Cinema, Audiovisual Mediaand Multimedia (Cerica),
/dash having regard to Rule 163 of its Rules of Procedure,
/dash having regard to the report of the Committee on Culture, Youth, Education, the Media and Sport
(A5-0351/2001),
A. whereas the market share of European films in cinemas within the EU has reached an all-time low,
averaging 22,5% in 2000 as against 73,7% for films from the USA, whereas in the mid-1960s theEuropean share was still around 60%,
B. whereas the situation in most candidate countries is even more serious and their relative economic
weakness makes them even more vulnerable to massive imports of American films,
C. whereas, on average, in the year 2000 European films secured only 26% of their box office takings
from sources outside their country of origin,
D. whereas the European Union’s trade deficit for 1999 with regard to audiovisual programmes in
relation to North America was €6829 million,
E. whereas however, in absolute terms, Europe produces more films than the USA,
F. whereas one in four European films intended for showing in cinemas is not distributed commercially
to them,
G. whereas therefore European films have benefited little from the revival in cinema-going since the early
1990s in terms of numbers of cinema-goers, box office takings and numbers of cinema screens inthe EU,
H. whereas European cinema festivals (whose programming is for the most part European) are an import-
ant means of promoting European films,
I. whereas there is a danger that our citizens will completely cease to be aware of the cinematic tradi-
tions of their own country and continent because they now have little or no contact with it,
J. whereas the existing Community instruments and the support measures of the Member States and
regions have not been sufficiently able to curb this adverse trend,
K. whereas the European Union’s MEDIA Programme, despite the appropriateness of its methods, does
not have enough funding to attain its ambition with regard to creating a sustainable and competitiveaudiovisual industry, its budget being only €400 million spread over five years,
L. whereas the i2i initiative of the Commission and the EIB Group, which was launched following the
Lisbon European Council in March 2000, could do much to enhance the industry’s competitivenessand to develop European content, although here too the inadequate budget, namely €500 millionspread over three years, will limit its impact,
M. whereas there are many reasons for the poor circulation of European films, which is therefore not
merely due to a distribution and exploitation problem,
N. whereas some broadcasters make a significant contribution to the production, financing and circu-
lation of European works,C140E/144 EN 13.6.2002 Official Journal of the European Communities
Tuesday 13 November 2001
O. whereas the failure of European television stations to broadcast non-national European productions is
partly to blame for the drastic decline in their distribution,
P. whereas the distribution of non-national European productions contributes to mutual understanding
of the individual European cultures,
Q. whereas the European film industry, unlike the film industry in the USA, often lacks funding for
development, marketing and promotion, and the importance of these aspects is often underestimated,
R. whereas the rise of multiplex cinemas has contributed to the growing uniformity of the films shown
and few European films survive competition with heavily promoted Hollywood films within thiscircuit, while the smaller, ‘independent’ cinema circuit, which has remained faithful to its traditionof showing more European works, often lacks amenities for audiences and technical quality,
S. whereas new digital distribution and projection techniques (e-Cinema) will create new opportunities
for the distribution of European films because they will make film distribution simpler and cheaper,
and whereas this will spectacularly increase the scope for supplying several language versions,
T. whereas, however, e-Cinema is still in its infancy and not only requires further research but will
initially also entail major investment in projection equipment,
U. whereas virtually all European films owe their existence to public funds and other government incen-
tives,
V. whereas the audiovisual industry is very future-oriented and is a major potential source of employ-
ment, as confirmed by a study performed for the Commission in 1997, which states that the turn-over of the audiovisual industry could rise by 70% by 2005, which could represent a growth of350000 new jobs,
W. whereas film is a vector of contemporary culture which can potentially reach a large audience and
thus does much to preserve and promote cultural diversity,
X. whereas the restoration, promotion and circulation of the European cinematic heritage have a major
part to play both in the economic exploitation of European culture and identity and in fostering theirappreciation,
Y. whereas the European internal market is extremely fragmented as regards the circulation of films,
although its population of 376 million, and after enlargement, of more than 480 million, makes it
the largest market in the world,
Z. whereas a strong European film industry presupposes strong national and regional film industries,AA. whereas, next to the nurturing of good directors, the development of a film star system could be one
of the keys to an internationally more attractive cinema,
AB. whereas in Europe the creative and commercial talent and the resources are available to build a
sustainable industry, and the European film industry can only survive in the digital age if it is gearedto the future and takes the initiative,
AC. whereas there are too few complete and reliable statistics about the situation in the candidate coun-
tries, which impedes a thorough analysis,
AD. whereas the revision of the ‘Television Without Frontiers’ directive is planned for 2002,13.6.2002 EN C140E/145 Official Journal of the European Communities
Tuesday 13 November 2001
1. Calls on the Commission and the Council urgently to adopt an ambitious, efficient and integrated
multiannual plan to make the European film industry competitive and increase the choice of films; calls tothis end for the funds made available for the film industry within the appropriations for the audiovisualindustry in the Community budget to be increased; considers that this plan should take into account thediversity of national circumstances and take measures to complement national and regional policies;
2. Welcomes the recent initiatives taken by the Commission in favour of the film sector, more particu-
larly the adoption of the Commission communication on certain legal aspects relating to cinematographic
and other audiovisual works, which can be considered as an important element within the abovemen-
tioned multiannual plan, and calls on the Commission and the Council to implement the actions providedfor in the Communication’s timetable, as well as the specific measures that follow on from them, as soonas possible;
3. Calls on the Commission to pursue a consistent Community policy on the film industry, particularly
as regards its cultural/industrial incentive policy, on the one hand, and its approach to State aid to theindustry under its competition policy, which should take into account the specific nature of the sector, onthe other, with the aim both of improving the European audiovisual industry’s competitiveness and ofsafeguarding cultural diversity;
4. Calls on the Commission, the European Investment Bank and the European Investment Fund, in
implementing the i2i initiative, which was launched following the Lisbon European Council in March2000, to devote particular attention to:
(a) the financing of transnational distribution structures for European films,
(b) the infrastructure requirements of smaller, independent cinemas which show many European films,
(c) the structural needs of European SMEs which produce independent films and are generally undercapi-
talised,
(d) structural needs of European cinema festivals whose programming is essentially European;
5. Calls on the Commission, in implementing MEDIA Plus, to aim for administrative and financial
management systems which are efficient and as appropriate as possible to the patterns and constraintsthat invariably characterise the industry, and, for the same purpose, to provide for the creation of aspecific executive European agency for cinema and audiovisual matters;
6. Draws attention to the major importance of the Europa Cinemas network of cinemas, and the inter-
esting work that is being done by the European Coordination of Film Festivals, which are supported by theMEDIA programme, for the distribution and promotion of European films, and considers that these net-
works should be further expanded;
7. Draws the attention of the Commission, the Council, the Member States, their regions and the can-
didate countries to the pressing need to create and foster European film stars of international standing andnotes in particular the importance of the ‘Shooting Stars’ initiative of the organisation European FilmPromotion, supported by MEDIA, which very much deserves to be expanded;
8. Calls on the Commission, when revising the ‘Television Without Frontiers’ directive, to draw up
provisions which must take into account, in addition to issues strictly connected with radio and television
broadcasting, regulation of the new broadcasting media and to investigate inter alia the desirability and
feasibility of:
(a) introducing a framework for television broadcasters to devote a minimum proportion of their trans-
mission time to promoting European films,
(b) introducing a framework for a minimum transmission of non-national, European works,
(c) introducing a framework for television broadcasters to invest a share of their annual turnover in the
European film industry (either through global contributions to national/regional film funds or throughindividual coproductions and cofinancing), an approach which is being applied successfully in certainMember States;C140E/146 EN 13.6.2002 Official Journal of the European Communities
Tuesday 13 November 2001
9. Recognises the major contribution of some European broadcasters to the cultural and economic
development of the European cinema;
10. Calls on the Commission, within the sixth Framework Programme of Research and Technological
Development, to devote attention to research relating to digital film distribution and projection techniques
(e-Cinema);
11. Welcomes initiatives such as the setting-up of the European Digital Cinema Forum and experi-
mental projects such as the Cyber Cinema in Babelsberg, and calls on the Commission and the Councilto remain alert to developments in the field of e-Cinema;
12. Recommends in particular that efforts be made in Europe to encourage use of new technologies for
new forms of distribution (‘cyber cinema’);
13. Calls on the Commission, via the European Audiovisual Observatory, to commission a thorough
analysis of European cinema audiences and their views on American and European films;
14. Urges the Commission, the Member States, their regions, and the candidate countries to encourage
consultation between the various parties involved in a film (in the fields of creation, production, financing,marketing, promotion, distribution, exploitation, etc.), from the development stage of the project;
15. Calls on the Member States, when using money from the European Structural Funds, to invest inter
alia in the modernisation and expansion of cinemas, including art cinemas, in economically disadvantagedregions, with the aim of highlighting the European film heritage and European films in general at regionaland local level;
16. Urges the Member States, their regions, and the candidate countries, in their educational curricula,
particularly for primary and secondary schools, to devote sufficient attention to developing the visualfaculty, so that young people learn to adopt a more critical approach to material in the visual media andare more open to a wide diversity of film cultures; calls further on the Commission to draw up a pro-gramme for visual education;
17. Draws the attention of the Member States to the fact that art cinemas can play an important part in
developing the visual faculty, both at school and by means of extracurricular activities; notes in this con-
nection the educational function which a Pan-European Children’s Network, to broadcast quality children’s
films in the various Member States and the candidate countries, could have;
18. Calls on the Commission to promote the restoration and protection of the European film heritage
inter alia by means of incentives to digitalise and classify those works;
19. Calls on the Commission, together with the Member States and all parties concerned, in the inter-
ests of cinema education, to promote the establishment of a catalogue of old films that are representativeof Europe’s heritage to make this available to European schools;
20. Calls on the Member States to encourage and practice the legal registration of cinema and audio-
visual works and introduce a register open to the public;
21. Calls on the European Union to provide a budget heading for the restoration of film works which
are of great social and artistic significance and represent a valuable heritage for the European Union;
22. Calls on the Commission and the Member States to promote the setting-up of a European Cin-
ematic Heritage Foundation whose purposes should in particular include organising a cinematic heritagenetwork and establishing links between those concerned by this (setting-up of databases, organisation ofseminars of international standing, etc.), training in the professional skills of film conservation and restor-ation, promotion of key European films and circulation of catalogues (compilation of thematic cataloguesand broadcasting on television channels, creation of DVD collections of films which form part of theEuropean heritage, cultivating awareness of the European cinematic heritage, particularly at schools, etc.);13.6.2002 EN C140E/147 Official Journal of the European Communities
Tuesday 13 November 2001
23. Urges the Member States and candidate countries, if they are not already doing so, to organise a
monitoring system for box office takings within their territory in order to keep track more effectively ofdevelopments on national and international markets;
24. Draws the attention of the Member States, their regions and the candidate countries to the positive
effects which appropriate fiscal incentives can have on competitiveness and employment in the film indus-try, and recommends that they consider introducing such measures;
25. Calls on the Member States, their regions and the candidate countries to ensure that the support
schemes which they operate within their own territory for the film sector comprise as few obstacles aspossible which prevent or hamper European coproductions;
26. Calls on the Commission to perform a feasibility study of the possibility of ‘interconnecting’ the
existing automatic support funds of the Member States and regions, including a simulation of the com-pensation which would need to be paid to the Member States for the financial loss;
27. Calls on the Commission to perform a feasibility study of the possibility of setting up a European
Promotion Fund to improve the opportunities for marketing European films with a transnational dimen-sion and sufficiently large potential audiences, and in this context to investigate the possibility of formalcooperation with the European Film Academy;
28. Considers that the European Film Awards could assume a higher profile and gain in prestige and
thus be a vital instrument for the purpose of promoting European films among the general public if they:
(a) received more political support from the European Union and the Member States,(b) were presented on television channels accessible to all, for example on European public broadcasting
networks, as a major event,
(c) received more attention from the media, both print and audiovisual;
29. Urges the Member States and candiate countries to establish national film academies, where these
do not yet exist, or to support them, with a remit to enhance the prestige and profile of national and(indirectly) European films in the eyes of the general public, particularly by awarding national film prizesand selecting entries for major international film prizes, such as the European Film Awards and the Ameri-can Academy Awards;
30. Calls on the Member States and candidate countries to encourage the promotion of European films
among the general public, including in less obvious fields, and thus to help bring about a general changeof mentality on the part of the public;
31. Calls on the Commission to ensure that, in the current round of WTO negotiations, existing
measures relating to the audiovisual content industry remain in force and the right is preserved to extendthese measures to new services in order to attain the policy objectives of the EU and the Member States,which have remained unchanged since the Uruguay Round in 1994;
32. Calls on the Commission and the Member States to encourage European airlines to show films
produced in Europe during flights;
33. Calls on the Commission, further to its planned communication on certain legal aspects relating to
cinematographic and other audiovisual works, to investigate to what extent introducing specific regulations
on the film industry could help the candidate countries to develop their national film industries better and
encourage the distribution of European films within their territory;
34. Calls on the Commission to investigate whether and to what extent the incorporation in the Treaty
of a separate specific provision or protocol concerning the film and audiovisual industry and the culturalsector in general could take account of the specific nature of the industry;
35. Instructs its President to forward this resolution to the Council, the Commission and the govern-
ments and parliaments of the Member States and of the candidate countries.C140E/148 EN 13.6.2002 Official Journal of the European Communities
Tuesday 13 November 2001