Proposal for a Decision of the European Parliament and of the Council modifying 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 - Development, Distribtuion and Promotion)
Date: 2003-04-16
Institutions: European Commission
Subjects: EU programme, European audiovisual area, audiovisual programme, continuing vocational training, cultural transmission, programmes industry

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.4.2003
COM(2003) 191 final

2003/0067 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

modifying 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 - Development, Distribtuion and Promotion)

(presented by the Commission)

 
EXPLANATORY MEMORANDUM

The MEDIA Plus programme was adopted by the Council on December 20th 2000 to run from
1 January 2001 to 31 December 2005, with a budget of 350 million Euro. 

This programme results from a proposal made by the European Commission on the basis of
Article  157,  intended  to  continue  Community  action  in  this  sector.  The  Commission  had
initially  implemented  an  “Action  programme  to  promote  the  development  of  the  European
audiovisual industry (MEDIA) (1991-1995)”, adopted by Council Decision 90/ 685/EEC, and
which comprised in particular measures designed to support the development and distribution
of  European  audiovisual  works.  This  was  followed  by  the  MEDIA  II  Programme  (1996-
2000), adopted by Council Decision 95/563/EC and  by Council  Decision 95/564/EC, which
confirmed  the  Community  strategy  for  developing  and  strengthening  the  European
audiovisual industry.

The MEDIA Plus proposal aimed to achieve the following objectives:

–  an  improvement  in  the  competitiveness  of  the  European  audiovisual  sector  —  including
small  and  medium-sized  enterprises  —  on  the  European  and  international  markets,  by
supporting  the  development,  distribution  and  promotion  of  European  audiovisual  works,
taking account of the development of new technologies;

–  strengthening  the  sectors  which  help  improve  the  transnational  movement  of  European

works;

–  respect for and promotion of linguistic and cultural diversity in Europe;

–  enhancing the European audiovisual heritage, in particular by digitisation and networking;

–  development  of  the  audiovisual  sector  in  countries  or  regions  with  a  low  audiovisual
production  capacity  and/or  a  restricted  linguistic  or  geographical  area  and  strengthening
networking and transnational co-operation between small and medium-sized enterprises;

–  the dissemination of new types of audiovisual content using new technologies.

The  MEDIA  Plus  programme  aims  of  strengthening  the  competitiveness  of  the  European
audiovisual  industry  with  a  series  support  measures  dealing  with:  the  development  of
production  projects  and  companies;  the  distribution  of  cinematographic  works  and
the  promotion  of  cinematographic  works  and  audiovisual
audiovisual  programmes; 
programmes. The programme has now existed since 1991. During this period, the programme
has enabled many thousands of films to be distributed within the European Union, as well as
the  development  of  many  others  or  their  promotion  etc.  In  addition,  the  Programme  has
supported  various  events  to  facilitate  market  access  and  to  improve  public  access  to  the
European audiovisual heritage.

This programme comes to an end at a time when there will be major changes for the future
structure  and  functioning  of  the  European  Union.  A  number  of  important  elements  will
certainly entail changes to Community action in this field: the European Union will welcome
ten new Member States, the Intergovernmental Conference will produce results based on the
Convention for the future of Europe, the European Parliament elections and the appointment
of a new European Commission. It is clear that the audiovisual sector will also be affected by
these changes, changes that the programme will need to adapt to. However, it is not possible
at the current time to predict accurately the extent of shape of these future modifications.

2

Despite this situation, it is essential to ensure continuity of Community support for the sector,
and  to  avoid  any  disruption  of  these  mechanisms  in  support  of  Community  objectives  laid
down  in  the  Treaty.  In  addition,  such  actions  involve  a  large  number  of  operators  from  the
audiovisual sector. In view of these  circumstances,  the European Commission  proposes  that
the existing programme should be prolonged unchanged for 2006.

It is necessary to assure a legal basis to enable the programme to be prolonged by one year. At
the same time, the Commission will continue to explore all existing possibilities for action in
this field, through preparatory actions, such as the i2i Audiovisual “growth and audiovisual”
action, and through the pilot projects foreseen under the MEDIA plus decision itself.

This  approach  will  enable  the  Commission  to  prepare,  on  the  basis  of  the  insight  gained,
together  with  the  results  of  the  mid-term  evaluation  foreseen  in  Article  12  of  the  Decision
establishing  the  programme  and  the  results  of  the  public  consultation,  a  proposal  for  a  new
programme for Community support for the audiovisual sector.

The  European  Commission  intends  to  present  a  proposal  for  the  establishment  of  a  new
European Community programme for support of the European audio-visual sector, before the
end of 2003. This programme would begin in 2007. Whilst it is clear that the other European
Institutions and  the operators concerned consider  that the  MEDIA programmes have  been a
success, the European Commission aims to further improve its action in this field.

The European Commission therefore proposes:

–  to prolong MEDIA Plus for 2006;

–  to adjust the overall budget of the MEDIA plus programme as prolonged to 435.60 million

EURO.

3

2003/0067 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

modifying 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 - Development, Distribtuion and Promotion)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
157(3) thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the Economic and Social Committee2,

Having regard to the opinion of the Committee of the Regions3,

Acting in accordance with the procedure laid down in Article 251 of the Treaty4,

Whereas:

(1)

(2)

The  Council  by  Decision  2000/821/EC  established  the  programme  MEDIA  Plus,  a
programme  to  encourage  the  development,  distribution  and  promotion  of  European
audiovisual works, to run from 1 January 2001 to 31 December 2005.

It  is  essential  to  ensure  the  continuity  of  Community  policy  for  the  support  of  the
European  audiovisual  sector  in  view  of  the  objectives  followed  by  the  Community
under Article 157 of the Treaty,

HAVE ADOPTED THIS DECISION:

Decision 2000/821/EC is hereby amended as follows: 

Article 1

(1) In Article 1(1), the date of 31 December 2005 is replaced by that of 31 December 2006

(2)  In  Article  5(2),  the  financial  reference  amount  of  EUR  350  million  is  replaced  by  EUR
435.60 million.

1

2

3

4

OJ C , , p. .
OJ C , , p. .
OJ C , , p. .
OJ C , , p. .

4

                                                
Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the
European Communities. 

Article3

This Decision is addressed to the Member States.

Done at Brussels, 

For the European Parliament
The President

For the Council
The President

5

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Culture - Industrial Policy

Activit(y/ies): Support to the audiovisual industry

Title of action:
DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
modifying 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 - Development, Distribution and Promotion)

1.

BUDGET LINE(S) + HEADING(S) 

B3-2010 MEDIA Plus (15.05.01.01)

B3-2010A (15.01.04.08)

2.

OVERALL FIGURES 

2.1.

Total allocation for action (Part B): 

85.600 € million for commitment

This  amount  represents  the  budgetary  impact  of  the  proposal  to  prolong  the
programme,  which  is  due  to  end  on  31  December  2005,  for  the  additional  year
concerned, 2006.

This amount relates to EU25. An amount corresponding to the impact of enlargement
in 2004 will be added to the programme’s overall budget, as modified by the current
prolongation proposal.

2.2.

Period of application: 

1 January 2006 - 31 December 2006

2.3.

Overall multiannual estimate of expenditure:

(a)

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1)

(financial

€ million (to three decimal places)

Commitments

2006
79,600

2007

2008

2009

Total

Payments

38,300

24,100

14,900

2,300

79,600

(b)

Technical and administrative assistance and support expenditure (see point 6.1.2)

Commitments

6,000

6

Payments

4,200

1,800

6,000

Subtotal a+b

Commitments

85,600

Payments

42,500

25,900

14,900

2,400

85,600

(c)

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure
(see points 7.2 and 7.3)

Commitments/
payments

3,553

3,553

TOTAL a+b+c

Commitments

89,153

Payments

46,153

25,900

14,900

2,300

89,153

2.4.

Compatibility with financial programming and financial perspective

[X] Proposal is compatible with existing financial programming.

2.5.

Financial impact on revenue:5

[X] Proposal  has  no  financial  implications  (involves  technical  aspects  regarding

implementation of a measure)

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

Comp/
Non-comp

Diff/
Non-diff

NO/
YES

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

YES/NO

YES/NO

No 3

4.

LEGAL BASIS

Art. 251 EC treaty

Art. 157 EC treaty

5

For further information, see separate explanatory note.

7

                                                
5.

5.1.

DESCRIPTION AND GROUNDS

Need for Community intervention 6

5.1.1. Objectives pursued

The  objective  of  the  prolongation  is  to  ensure  the  continuation  of  the  MEDIA  Plus
Programme  for  support  of  the  European  audiovisual  industry  during  the  year  2006.  The
present  programme  will  expire  on  the  31  December  2005.  The  prolongation  is  deemed
necessary to ensure continuity of the Community action in the transition period, which will be
characterised  by  very  important  institutional  changes  (enlargement  of  the  Union,  a  new
European  Parliament  and  a  new  Commission).  Moreover,  the  prolongation  will  allow  the
MEDIA Programme to comply with the financial perspectives, which have been established
for the whole Commission until 2006.

The  present  request  for  prolongation  does  not  include  any  amendment  to  Council  Decision
2000/821/EC of 20 December 2000 establishing the MEDIA Plus Programme, except for the
duration of the programme. As a consequence an additional year of budget allocation will be
established.

The  objective  of  the  decision  remains  unchanged;  to  provide  support  to  the  European
audiovisual  industry  in  terms  of  growth  and  employment,  the  enhancement  of  its
competitiveness  at  European  and  global  level,  the  strengthening  of  a  single  market  in  the
Union whilst ensuring the preservation and promotion of cultural diversities.

5.1.2. Measures taken in connection with ex ante evaluation 

The  MEDIA  Plus  Programme  is  the  continuation  of  the  MEDIA  I  and  MEDIA  II
Programmes,  which  were  initiated  in  1991  and  1995  respectively.  These  programmes  are
meant to provide continuous support to the audiovisual industry in Europe and are regularly
revised  and  consequently  readapted  to  the  emerging  needs  of  the  industry.  The  evaluation
exercise consists of ex-ante, mid term and ex-post evaluation that in some cases overlap. The
MEDIA Plus Programme has been designed after a careful ex ante evaluation as well as after
consultation of all interested parties. The evaluation ex ante has built upon the results of the
MEDIA  II Programme  which  finished  in  2000. Whilst a Community programme  to  support
the European audio-visual industry has proved its importance in terms of positively impacting
on  the  European  audiovisual  market,  the  implementation  of  the  MEDIA  II  Programme  has
helped in better targeting the Community intervention. 

5.1.3. Measures taken following ex post evaluation

At present the Commission’s services are embarking on a mid term evaluation of the MEDIA
Plus Programme, the results of which are likely to provide a better definition of the scope and
modalities of the Community intervention. The evaluation will focus on the first two years of
implementation  of  the  programme.  It  will 
indicators  of  performance  and
implementational shortcomings that will then be corrected for the continuation of the MEDIA
Plus Programme. 

identify 

6

For further information, see separate explanatory note.

8

                                                
5.2.

Action envisaged and budget intervention arrangements

The  MEDIA  Plus  Programme  foresees  action  preceeding  and  following  the  production  of
audiovisual projects. The actual production process does not benefit from Community support
as, following the subsidiarity principle, this is the scope of the existing national programmes
supporting audiovisual productions. The action concentrates on the development phases of the
project,  ensuring  that  relevant  actors,  namely  directors,  producers  and  screenwriters,  are
enabled  to  develop  creative  projects  with  a  coherent  business  plan.  This  development
component ensures both at individual and group level, access to soft loans for the elaboration
of fully-fledged projects both from the artistic and the commercial point of view.

Post-production,  the  largest  part  of  the  Community  contribution  aims  at  supporting  the
distribution  costs  of  European  audiovisual  products.  This  is  done  in  the  form  of  grants  and
automatic  returns  to  European  distributors.  The  grant  of  award  for  support  depends  on  the
commercial viability of the distribution plan as well as the European and cultural value of the
project  distributed.  The  distribution  component  focuses  on  the  support  for  the  transnational
circulation of European audiovisual products. It addresses theatrical distribution as well as TV
distribution with a particular focus on the use of new technologies in the distribution process.
This  action  involves  grants  and  returns  related  grants  to  cover  the  distribution  costs  of
European films and audiovisual products.

With  a  view  to  enhancing  the  competitiveness  of  European  audiovisual  industry  and
consolidating a European market for the audiovisual sector, the MEDIA Programme supports
action  for  the  promotion  of  the  European  films  in  Europe  and  outside  Europe.  Under  the
heading “promotion” the MEDIA Plus Programme supports European film, documentary and
animation  festivals,  as  well  as  promotion  actions  all  over  the  world.  This  action  foresees
financing by means of subsidies to festivals for up to fifty percent of their total budget and by
service contracts of the promotion actions.

5.3.

Methods of implementation

The implementation mechanism will follow the general regulation for Community actions. It
includes  grants,  loans  and  co-financing  schemes,  based  on  detailed  financial  requests.  The
Community  is  fully  financing  services  such  as  the  organisation  of  expert  panels,  market
studies,  evaluation  of  projects  and  technical  assistance.  The  financing  will  be  awarded
following calls for tender and calls for proposals.

The MEDIA Plus Programme is centrally managed by the Commission services. A technical
Assistance  Office  located  in  Brussels  supports  the  Commission  services  in  management
related  issues.  This  office  is  financed  on  budgetary  line  B3-2010A  (15.01.04.08)  (covering
both MEDIA Plus and MEDIA Training). At national level and in co-operation with national
authorities  MEDIA  desks  ensure  the  interface  with  the  beneficiaries  of  the  Programme.  It
should be  noted  that a study has been launched to examine the possibility of replaceing  the
existing technical assistance office with an Executive Agency.

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B - (over the entire programming period)

6.1.1.

Financial intervention

Commitments (in € million to three decimal places)

9

Breakdown

2006

Total

Action 1 Development

Action 2 Distribution

Action 3 Promotion

Action 4 Pilot Projects

Action 5 Horizontal issues

16,480

44,300

7,200

5,620

6,000

16,480

44,300

7,200

5,620

6,000

TOTAL

79,600

79,600

6.1.2.

Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure
(commitment appropriations)

It should be noted that the technical assistance costs for the MEDIA Traning programme
are  covered  by  budgetary  line  B3-2010A  (15.01.04.08)  that  covers  the  Technical
Assistance Office for both MEDIA Training and MEDIA Plus.

2006

Total

1) 
administrative assistance

Technical 

and

Technical 

a) 
offices

assistance

5,030

5,030

b)  Other 
administrative assistance:

technical 

and

- intra muros:

- extra muros:

of  which  for  construction
of
maintenance 
and 
computerised  management
systems

Subtotal 1

2) Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

TOTAL

5,030

0,240

0,330

0,200

0,200

0,970

6,000

5,030

0,240

0,330

0,200

0,200

0,970

6,000

The  nature  of  these  expenses  could  be  altered  if  the  results  of  a  study  on  costs  and
effectiveness that will be launched in 2003 prove that it would be advantageous to set up an
Executive Agency to manage the programme.

10

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)7

Breakdown 

Action 1 - Development

- Measure 1: Single Projects

- Measure 2: Slate Funding

Action 2 - Distribution

- Measure 1: Selective scheme

- Measure 2: Automatic scheme

- Measure 3: Sales Agents

- Measure 4: TV distribution

Action 3 - Promotion

- Measure 1: Promotion

- Measure 2: Festivals

Action 4 - Pilot Projects

Action 5 - Horizontal Issues

TOTAL COST

Commitments (in € million to three decimal places)

Type
of outputs
(projects, files )

Number of
outputs

Average unit
cost

(total for years
1…n) 

Total cost

(total for years
1…n)

1

2

3

4=(2X3)

183

118

-

280

-

24

83

-

48

96

6

0,033

0,089

-

0,043

-

0,054

0,157

-

0,100

0,025

0,937

16,480

6,000

10,480

44,300

12,000

18,000

1,300

13,000

7,200

4,800

2,400

5,620

6,000

79,600

If necessary explain the method of calculation

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

7.1.

Impact on human resources

The  officials  currently  managing  the  existing  programme  will  also  be  in  charge  of  the
management of the prolongation of the MEDIA Plus Programme. 

The Budget line B3-2010A (15.01.04.08) covers the staff and administrative expenditure for
both programmes, MEDIA Plus and MEDIA-Training.

Types of post

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
permanent posts

Number of
temporary posts

Officials 
temporary staff

or

A

B

8

5

2

1

Total

10

6

Description of tasks deriving from the
action

If necessary, a fuller description of the
tasks may be annexed.

7

For further information, see separate explanatory note.

11

                                                
C

5

Other human resources

Total

7.2.

18

1

1

5

10

1 DNE+5 Aux.

6

6

28

Overall financial impact of human resources

Type of human resources

Amount (€)

Method of calculation * 

Officials: 18

Temporary staff: 4

Other human resources

(budget line:B3-2010 A)

1.944.000

108.000 x 18

300.600

108.000 x 1(TA)

99.404 x 1 (AA)

55.488 x 1 (AB)

37.728 x 1 (AC)

240.000

43.668

The amounts are total expenditure for twelve months.

Total

2.528.288

7.3.

Other administrative expenditure deriving from the action

Budget line

(number and heading)

Overall allocation (Title A7)

A0701 – Missions

A07030 – Meetings
A07031 – Compulsory committees 1

A07040 – Conferences

A0705 – Studies and consultations

Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

Amount €

Method of calculation

-

-

25  Member  State  representatives  for
1000€ for 6 meetings per year.

43.000

332.000

300.000

100.000

250.000

Total

1.025.000

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

I.

II.

III.

Annual total (7.2 + 7.3)

Duration of action

Total cost of action (I x II)

3.553.288 €

1 year

3.553.288 €

The requirements for human and administrative resources expenditure will be met within the
budget  allocated  to  the  Direction  General  responsible  within  the  context  of  the  annual
allocation procedure.

12

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

In terms of implementation of the programme, the prolongation will continue on the system
built up under MEDIA Plus. It will involve the participation in selection panels of the various
calls for proposals, the monitoring of ongoing service contracts and the financial control of all
transactions between the Commission and the beneficiaries.

8.2.

Arrangements and schedule for the planned evaluation

A  mid  term  evaluation  of  the  MEDIA  Plus  Programme  is  currently  being  initiated  by  the
Commission’s services with the assistance of an external independent consultant. The results
of such an evaluation will help in  correcting, if  needed, implementational shortcomings and
structural deficiencies of the current programme. At the end of the MEDIA Plus Programme,
an independent  evaluator  will  carry  out  an  evaluation  of  the  impact  of  the  programme.  The
results  of  the  ex-post  evaluation  will  be  transmitted  to  the  Parliament,  the  Council,  the
Committee of the Regions and the European Economic and Social Committee.

9.

ANTI-FRAUD MEASURES

All the contracts, conventions and legal undertakings concluded between the Commission and
the beneficiaries  under  the  programme foresee the  possibility  of  an  audit  at  the  premises  of
the  beneficiary  by  the  Commission’s  services  or  by  the  Court  of  Auditors,  as  well  as  the
possibility  of  requiring  the  beneficiaries  to  provide  all  relevant  documents  and  data
concerning  expenses  relating  to  such  contracts,  conventions  or  legal  undertakings  up  to  5
years  after  the  contractual  period.  Beneficiaries  are  subject  to  the  requirement  to  provide
reports  and  financial  accounts,  which  are  analysed  as  to  the  eligibility  of  the  costs  and  the
content,  in  line  with  the  rules  on  Community  financing  and  taking  account  of  contractual
obligations, economic principles and good financial management.

13