Opinion of the European Economic and Social Committee on ‘Europe's Creative Industries’
Date: 2004-01-28
Institutions: European Economic and Social Committee
Subjects: cultural policy, cultural transmission, culture industry

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Opinion of the European Economic and Social Committee on ‘Europe's Creative Industries’

(2004/C 108/14)

On 9 April 2003, in a letter from Mrs Viviane Reding, the Commission asked the European Economic and
Social Committee, under Article 262 of the Treaty establishing the European Community, to draw up an
opinion on Europe's Creative Industries.

On 15 April 2003, the Committee Bureau instructed the Section for the Single Market, Production and
Consumption to prepare the Committee's work on the subject. The section adopted its opinion on
16 December 2003. The rapporteur was Mr Rodríguez García Caro.

At its 405th plenary session of 28 and 29 January 2004 (meeting of 28 January), the European Economic
and Social Committee adopted the following opinion by 72 votes to seven with five abstentions.

1. Introduction

1.1 Reason for the opinion

1.1.1
On 9 April 2003, Commissioner Viviane Reding
wrote to the President of the Committee to request that an
exploratory opinion be drawn up on Europe's creative indus-
tries.

The Commissioner felt that the EESC, with its roots firmly
planted in civil
society and representing the interests of
industry and workers, is particularly well placed amongst other
things, to:

— offer expertise on this issue;

— sum up the interests at stake;

1.1.4
At its meeting held on 4 September 2003, the Euro-
pean Parliament approved the Resolution on Cultural Indus-
tries. The rapporteur was MEP Myrsini Zorba.

1.1.4.1
This comprehensive text was drafted using the same
rigorous methodology as that adopted by the European Parlia-
ment when drawing up a draft resolution containing practical
suggestions for methods that could be adopted by the respon-
sible European institutions and the Member States.

1.1.4.2
At the public hearing held on 22 April 2003, the
results of a questionnaire sent out to two hundred professional
associations,
federations of specific sectors, companies and
experts in this field were presented. The following were cited as
the major problems faced by the European creative industries:

— shape ideas that express common ground between the

— lack of investment;

parties concerned.

The Commission intends in principle to propose new Com-
munity instruments in the areas of culture and the audio-visual
media early in 2004.

— problems related to distribution;

— restricted size of the market;

— linguistic diversity;

1.1.2
facing these industries are:

According to the Commission, the major challenges

— pirating.

— external competition;

— pirating associated with the new technologies;

1.1.4.3
According to the document presented at the hearing,
operators in this sector are dissatisfied with cultural policy at
both national and European level.

— the balance between major operators and independent

entrepreneurs (market access and cultural diversity);

1.2 Content of the exploratory opinion

— varying tax treatment;

— and a lack of skills and training in certain of the sector's

lines of work.

1.1.3
detailed examination of the following aspects:

The Commission feels that this situation calls for a

— the challenges facing the creative industries;

— hurdles they will have to overcome;

— the contribution that the EU can make to help them rise to
these challenges, in particular in the context of an enlarged
Union.

In its opinion,

1.2.1
the European Economic and Social
Committee focuses on specific issues which together are
considered to be of particular relevance for future Community
action.

1.2.2
questions:

The Committee will be asked to respond to two basic

— What are the cultural and socio-economic challenges facing

Europe's creative industries?

— What contribution could Europe make to respond to these

challenges in a lasting way?

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2. Europe and culture

2.1 Culture

2.1.1
The definitions given in different dictionaries for the
overall notion of ‘culture’ are generally very similar. Culture
could be described as the set of knowledge, customs and levels
of artistic and scientific development that defines an era or
social group.

2.1.1.1
The peoples of Europe share similar knowledge,
customs, levels of development and values, to varying extents,
such that, with all due respect to much more local
identity
markers, we could claim the existence of a European culture or
‘European Cultural Area’.

2.1.1.2
In line with the focus of the opinion presented here,
culture can equally be defined as a set of cultural and artistic
products and productions from the fields of music, theatre,
cinema, television,
literature and so on. This description of
culture takes much greater account of its economic dimension
and recognises the important role played by the creative indus-
tries.

2.1.2
However, culture is not an abstract concept; it is born
out of the very lives of those who make it possible. Culture
cannot exist without artists, performers and other creative
minds who take their inspiration and turn it into works to be
considered and enjoyed by all citizens and which form the
cultural wealth of all humanity.

2.1.3
Indeed, what would be the purpose of a cultural work
if it were entirely inaccessible? Access to culture enhances the
possibilities of the human mind. But it should not be forgotten
that any abuse of culture can turn it into an element of power
and control. Strengthening culture and promoting free and
open access to culture for all citizens can help counter forms of
hegemony that attempt to use culture as a means to becoming
established.

2.2 Cultural Policy and a European Cultural Area

2.2.1
Prior to the entry into force of the Maastricht Treaty,
the European Union had no legal basis on which to create a
cultural policy. Now, with a solid legal basis and through the
launch of programmes specific to this area of Community
policy,
the European Union no longer appears solely as a
geographical, political, social or economic entity on the world
scene, rather the more essential aspects of the shared cultural
heritage of the European Community are taking on increasing
importance.

In the light of this, the Committee agrees that culture
2.2.2
constitutes an essential and unifying element in the everyday
lives and identities of the citizens of Europe. (1)

States and the Union with its institutions must help draw up a
joint vision for the future that will enable the Union as a whole
to take more decisive action in the field of culture.

A cultural policy developed at European level would
2.2.3.1
need to promote access for the citizens of the Union to the
cultural identity which unites them as well as awareness of the
cultural diversity of the different regions of Europe and of the
people who make up in that diversity.

2.2.4
In its resolution of 5 September 2001, the European
Parliament indicated that it felt that the cultural dimension of
the Union should be strengthened for the future, both in poli-
tical and budgetary terms, boosting cooperation between the
Member States in order to create a ‘European Cultural Area’.

The creation of a European Cultural Area would
2.2.4.1
benefit the Union on two counts: firstly it would enhance the
cultural wealth of Europe, and secondly it would bring
economic advantages through the development of the creative
industries. The creative industries are what provide the citizens
of the Union with access to culture and it is through these
industries that our culture is exported beyond the Community
borders.

2.2.5 While the purpose of this opinion is not to provoke a
debate concerning European cultural policy, the Committee
does feel that this is a crucial issue that has a bearing on the
creative industries and should be looked at in depth.

3. Community Programmes that support culture and the

creative industries

3.1 Legal basis

3.1.1
Prior to the ratification of the Maastricht Treaty, the
framework within which to
European Union had no legal
develop a cultural policy at Community level. None of the arti-
cles or sections of the Rome Treaty made any specific reference
to this issue; only the preamble alluded to the role played by
culture in unifying peoples and promoting socio-economic
development.

3.1.1.1
Article 151 of the EC Treaty sets down a basis on
which to promote, support and supplement action undertaken
by the Member States, while respecting national and regional
diversity, placing particular emphasis on the common cultural
heritage of the citizens of the Union. However, harmonisation
of any sort is expressly excluded from the sphere of application
of this article.

Although the EU does not have a common policy to
2.2.3
deal with the various cultural sectors and despite the restric-
tions laid down by Article 151 of the EC Treaty, the Member

(1) European Parliament Resolution on Cultural

Industries, whereas

clause A. [P 5 TA-PROV (2003)0382].

3.1.2
One of the tasks that falls to the European Union is to
ensure that the conditions necessary for the competitiveness of
the Community's industry exist. Article 157 of the EC Treaty
stipulates that Community action shall be aimed, amongst
other things, at speeding up the adjustment of industry to
structural changes and encouraging an environment favourable
to initiative and cooperation between undertakings.

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3.1.2.1
The European Union must contribute to the creation
of an environment that is favourable to the development of the
creative industries, enabling them to benefit from the findings
of research, technological progress, better access to funding
and the advantages of cooperation within a European Cultural
Area.

in investment

multimedia content industries, characterised above all by insuf-
ficient dissemination of European productions and a chronic
deficit
in the development of new projects,
ongoing training and the promotion and distribution of
productions. The significance of these shortfalls becomes all the
more apparent when compared with productions of North
American origin.

3.2 Specific programmes in the field of culture

Under the appropriate legal framework provided by
3.2.1
Article 151 of the EC Treaty, the European Union launched
three programmes in 1996 and 1997 aimed specifically at the
field of culture: Kaleidoscope (2), set up to promote artistic crea-
tion and promote awareness and the dissemination of the art of
the peoples of Europe; Ariane (3), designed to develop coopera-
tion between the Member States in the field of literature and
reading and to promote better knowledge of the literary and
historical works of the countries of Europe through translation;
and Raphael (4),
intended to boost cooperation between the
Member States in relation to cultural heritage with a European
dimension.

In February 2000,

the first European Community
3.2.2
framework programme for culture (5) was approved. This
programme simplifies Community action by establishing a
single financing and programming instrument
for cultural
cooperation. The resulting cooperation between the players in
the cultural field is contributing to the creation of a European
Cultural Area, the development of artistic and literary creation,
raising awareness of European history and culture, boosting the
dissemination of culture worldwide, and increasing the value of
heritage which has a European dimension and promoting inter-
cultural dialogue.

3.2.2.1
Culture 2000 aims to create a common cultural area
characterised by cultural diversity and the shared cultural heri-
tage of the peoples of Europe. The countries of the European
Economic Area and the candidate countries have also been
invited to participate in this programme. It supports artistic
and cultural projects which have a European dimension in
terms of their conception, organisation and realisation. The
majority of
the projects involved also have a multimedia
element seen through the creation of websites and discussion
forums.

3.2.2.2
Culture 2000, which covers the period 2000 –
2004, is set to be extended via a new Proposal for a Decision
of the European Parliament and the Council amending Decision
No. 508/2000/CE (6), which suggests that
the programme
should be continued unchanged until the year 2006.

3.3 Community programmes relevant to the field of culture

3.3.1
The aim of MEDIA, (the French acronym for ‘Measures
to Encourage the Development of the Audiovisual Industry’), is
to minimise the weaknesses of the European audiovisual and

(2) Decision 719/96/EC
(3) Decision 2085/97/EC
(4) Decision 2228/97/EC
(5) Decision 508/2000/EC
(6) COM(2003) 187

3.3.1.1
The MEDIA programmes, therefore, support culture
industries that provide
via projects involving the audiovisual
this type of cultural production. More precisely, the aims of the
MEDIA Training (7) and MEDIA Plus (8) programmes, previously
MEDIA I and MEDIA II, are, respectively, to train professionals
in the European audiovisual production industry and to boost
the development, distribution and promotion of audiovisual
programmes.

The Commission has conducted a public consulta-
3.3.1.2
tion exercise with a view to proposing a new generation of
programmes for the European audiovisual industry, based also
on the outcome of the evaluation of the current programmes.

3.3.2
Furthermore, the EU runs various programmes and
actions, which are not directly linked to support for culture
itself, but which comprise approaches and back individual
projects that touch on a host of aspects related to culture in
general and cultural heritage in particular.

The following can be listed as some of the most
3.3.2.1
significant of these programmes, complete with a description
of the cultural activities to which they relate:

a) The Fifth Framework Programme for Research and Techno-
logical Development, including some programmes that aim
in particular the European
to preserve cultural heritage,
research programme on a
information
‘User-friendly
society’.

b) Many projects financed by the European Union education
and training programmes SOCRATES and LEONARDO aim
to raise awareness and enhance knowledge of the arts and
to create links between cultural and educational institutions
with a view to teaching European citizens about works of
art such that they might appreciate these better and be
encouraged to train for professions related to culture in its
many guises.

c) The European Social Fund, which supports training schemes
that specialise in subjects related to the arts, such as the
restoration and conservation of the photographic heritage
in Italy. The Community initiative EQUAL should also be
mentioned in this connection.

d) The Youth programme, which finances annual gatherings of
young people aged between 15 and 25, some of which
focus on artistic activities.

(7) Decision 163/2001/EC
(8) Decision 821/2000/EC

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e) The eContent Programme, which is part of the eEurope
Action Plan, and specialises in developing automatic transla-
tion technologies that will help preserve the linguistic diver-
sity of literary works written in Europe as well as supporting
the production of European digital content.

visual sector. However, other initiatives and programmes do
not fall into this category. It would perhaps be advisable to
consider whether there should be more coordination between
these programmes.

f) The European Union's regional policy also contributes
financially to setting up areas of artistic creation and distri-
bution, such as music schools, concert halls, recording
studios, etc.

g) The regional ‘EUROMED HERITAGE’ programme, which is
part of the MEDA programme set up to foster cooperation
with the Mediterranean countries and supports the develop-
ment of the Euro-mediterranean cultural legacy. EUMEDIS,
an initiative aimed at developing digital services in the Medi-
terranean countries and in particular multimedia access to
that region's cultural heritage and tourism, is part of this
programme.

h) The URB-AL programme, which supports cooperation
between towns and cities of the European Union and Latin
America for issues related to the problems of urban areas,
including the preservation of urban heritage. An equivalent
programme is run in Asia under the title ASIA-URB and
cooperation projects involving the countries of Africa, the
Caribbean and the Pacific under the Cotonou Agreement
seek to conserve and boost that region's cultural heritage.

i) The European Regional Development Fund, which finances
heritage restoration projects as part of general regional
initiative
development programmes. The Community
URBAN,
in crisis, and
INTERREG, which promotes cooperation between the
regions of the European Union in different areas such as
urban development, also lend their support to projects of
this type.

set up to assist urban areas

j) The European Agricultural Guidance and Guarantee Fund,
which supports development projects in rural areas and
comprising the LEADER project, which contributes to the
cultural renovation and upgrading of rural buildings, sites,
furnishings and other materials.

k) The LIFE III programme, which is part of the Sixth Com-
munity Environment Action Programme and which contri-
butes to the Union's environment policy by promoting the
enhancement of sites of natural and cultural interest and the
sound management of any related tourism.

4. The creative industries

4.1 What is meant by the creative industries?

The Committee does not wish to provide a narrow
4.1.1
and restricted definition of what it means by the term ‘the crea-
tive industries’, as the definition should aim to establish which
sectors fall within the cultural and creative industries.

source

on which

Furthermore,

4.1.1.1
is
depending
consulted, some quite different sectors of activity are labelled
creative industries. These include the performing arts, such as
theatre, music, dance and others, the plastic arts, covering both
painting and sculpture etc., cultural craftsmanship, book
publishing, music publishing, the audiovisual media and the
cinema, the communication media, cultural and above all archi-
tectural heritage,
the conservation and restoration of our
cultural heritage and cultural works and even tourism where
this aims at raising awareness of a specific cultural asset,
whether urban or rural, not to forget museums, libraries and
other centres of culture.

identity,

According to UNESCO, creativity, an important part
4.1.2
of people's cultural
is expressed in different ways.
These means of expression are copied and boosted by industrial
processes
industries
and worldwide distribution. Cultural
consist of books, magazines, music records, film and videos,
multimedia products and other new industries that are being
created. (9)

This definition does indeed cover the concept of the
4.1.2.1
creative
sectors
industries very accurately. Some
containing cultural works that cannot be reproduced on a large
scale, but which attract interest, invite direct or indirect study
or which are visited by citizens should be added to this list.
These are industries that, through tourism, bring millions of
citizens closer to cultural heritage that cannot be reproduced.

further

4.1.2.2
In view of the above and in order to guarantee the
effectiveness of a European cultural policy in supporting the
creative industries, the Committee seconds the request for a
clear definition submitted by the European Parliament in its
Resolution of 4 September 2003, and contributes towards this
definition by listing a series of criteria in points 4.1.2 and
4.1.2.1 of this document.

In the Committee's view,

3.3.3
this list of programmes
reflects the growing interest of the Community institutions in
the promotion of culture. However, it also indicates the spread
initiatives and projects which are individually achieving
of
considerable progress, but which could create
synergies,
achieve even better results and show greater effectiveness in
reaching the culture targets set were they coordinated.

4.2 Into what categories could the different creative industries be

placed?

4.2.1
For merely didactic purposes, and without excluding
other forms of classification, the creative industries can be
placed into the following categories:

Several of the programmes listed fall under the aegis
3.3.3.1
of
in particular those most
directly linked to culture, the creative industries and the audio-

the same Directorate General,

— Cultural displays. This category comprises artistic displays
such as theatre, concerts, dance and other live exhibitions

(9) http://www.unesco.org/culture/industries

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— Cultural works and works of art such as the artistic and
architectural heritage and all the very important tasks of
conservation and restoration which ensure we are able to
enjoy this art long into the future.

— Cultural
libraries.

institutions

such as museums, galleries

and

— Publishing. This sector covers both the publication of
books, music and photographs as well as cinema and its
reproduction on video and DVD.

— The daily media. This category covers radio and television

broadcasting and the media in general.

— The multimedia sector. This sector includes the new cultu-
information

digital media

rally-oriented
provided via broad-band Internet access.

and on-line

4.2.2
The significance of cultural products and the creative
industries from an economic point of view is clear. The
growing economic importance of the creative industries has
turned them into an important source of economic activity and
ongoing job creation. As such, the Committee feels that the
creative industries of the European Union have a significant
role to play in enabling the Lisbon objectives concerning
employment to be met.

These opinions, which are still fully valid today, are reit-

5.4
erated below.

Opinion on the Proposal

5.4.1
for a Council Decision
concerning Community participation in the European Audiovi-
sual Observatory (10)

Opinion on the proposal

5.4.2
for a Council Decision
amending Council Decision 90/685/EEC concerning the imple-
mentation of an action programme to promote the develop-
ment of
(1991-
1995) (11)

the European audiovisual

industry (Media)

5.4.3
Opinion on the proposal for a Council Decision on a
training programme for professionals from the European audio-
visual programme industry and on the proposal for a Council
Decision on a programme to promote the development and
distribution of European audiovisual works (12)

5.4.3.1
Under point 3 of the general comments listed in this
opinion, the Committee conducted an in-depth analysis into
the shortfalls of the sector, indicated by the Commission in its
Draft Decision, and offered a series of observations which
remain valid today. As such, the Section reiterates its support
for them.

4.2.2.1
In a society that sets increasing store by leisure time
and activities, the creative industries help promote knowledge,
entertainment and employment.
It would seem only logical
then that both the Member State and Community authorities
should support the development and expansion of these indus-
tries, especially with regard to technological change.

4.2.2.2
practised and used by indigenous and minority populations.

Special measures are required for the specific culture

5.4.3.2
Today, the same difficulties as those encountered
years previously, and on which the Committee had given its
views, have once again been identified. It would appear that
the measures taken, action undertaken and projects backed,
above all in the audiovisual sector, have failed to resolve the
structural problems which emerged years ago. The Committee
feels that this itself is a problem. It is clear that despite every-
thing, the institutions of the European Union have acted inef-
fectually.

5. The European Economic and Social Committee, culture

and the creative industries

5.1
The essential role of the European Economic and Social
Committee is to represent organised civil society and the socio-
economic partners within the European Union. As such, it is
ideally placed to offer an opinion that will reflect not only the
concerns and wishes of these partners, but will also provide a
vision of culture from the viewpoint of the users of the creative
industries, adding a further perspective to the debate.

5.2
Over the years, the Committee has voiced its views on
culture in general and the creative industries in particular on
several occasions. In terms of the latter, the Committee has
expressed its view on the industries of the audiovisual sector
through the different opinions concerning the adoption of the
different phases of the MEDIA programme.

5.3
In its opinions the Committee clearly stated its position
both on the pin-pointing of the problems and challenges faced
by the audiovisual industries as well as on possible solutions
that could be adopted in order to support and boost the crea-
tive industries with the aim of promoting the accessibility and
dissemination of the culture of Europe in general and of the
individual states and regions in particular.

5.4.4
Opinion on the Proposal for a Decision of the Euro-
pean Parliament and of the Council on the implementation of a
training programme for professionals in the European audiovi-
sual programme industry (MEDIA - Training) and on the
Proposal for a Council Decision on the implementation of a
programme to encourage the development, distribution and
promotion of European audiovisual works (MEDIA Plus) (13)

5.4.4.1
As mentioned in reference to the previous opinion,
the same unresolved problems as in the past continue to affect
this opinion
the audiovisual sector: points 1.3 and 1.4 of
express this once again in very similar terms, and refer to some
additional challenges.

the Committee indicates its support

Under point 3.1 of the general comments listed in
5.4.4.2
for the
this opinion,
proposed decision containing complementary measures
to
promote the dissemination of the common cultural heritage
specifying that, ‘this fact should be highlighted in the proposal,
given that the promotion of our cultural identity is involved.’

(10) OJ C 329, 17.11.1999
(11) OJ C 148, 30.5.1994
(12) OJ C 256, 2.10.1995
(13) OJ C 168, 16.6.2000

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5.4.4.3
Finally, it is worth making reference to point 3.3 of
Indeed, the Section feels the comments made
the opinion.
under this point to be of such relevance that it considers it
impossible to discuss the problems and solutions surrounding
the creative industries without first making reference to these
remarks. As such,
they are reinforced in the exploratory
opinion.

5.4.4.4
The Committee stated the following: ‘the Committee
regrets that the proposal has not taken account of the fact that
the importance of the European audiovisual industry does not
derive exclusively from its entrepreneurial dimension, but also
from its role as a vehicle for the promotion of our culture and
the Committee recognises the
democratic values’.
cultural dimension of the audiovisual industry.

In short,

On 24 September 2003,

5.4.5
the Committee plenary
session adopted a new opinion on the Proposal for a Decision
of the European Parliament and of the Council modifying Deci-
sion 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 European audiovi-
sual programme industry (MEDIA-Training) (2001-2005) and
the 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,
Distribution and Promotion). (14)

it would have been better

According to points 2.1 and 2.2 of this opinion, the
5.4.5.1
Committee thinks that
the
Commission had taken earlier action to create the conditions
and adopt the measures needed ahead of the discussion and
submission of the new multiannual programme, rather than
simply prolonging existing programmes. Once again the
Committee reiterates its hope that account will be taken of the
suggestions and proposals contained both in this opinion and
those mentioned above.

if

5.5 The European Economic and Social Committee and the Culture

2000 Programme

5.5.1
The Committee regrets that it was unable to submit
remarks on this programme in view of the restriction placed by
paragraph 5 of Article 151 of the EC Treaty. This Article does
not provide for consultation of the Committee when intro-
ducing measures to promote culture, although thanks to the
provisions of Article 157 it must be consulted for all measures
supporting industry in general and the creative industries in
particular.

5.5.2
Given that the Committee represents organised civil
society, it would make sense for its opinion to be asked on all
issues under discussion related to the cultural policy of the
Union, in particular as the Committee considers culture to be
part of the European model of society.

document

5.5.3
In April of 2003, the Commission published a public
future
entitled,
consultation
programme of cultural cooperation for the European Union
after 2006’ (15). The aim of this document was to launch a
debate on future projects in the wake of Culture 2000.

‘Designing

the

In order

to make known the opinion of

5.5.4
the
Committee on this programme, which will directly or indirectly
affect players in the cultural sector, from the creators through
to the producers and editors of cultural products, and as such
will affect the creative industries themselves, the Committee
should draw up an own-initiative opinion outlining its views.

6. Cultural and socio-economic challenges faced by the

creative industries in Europe

6.1 The need to define what is meant by the ‘creative industries’ and
identify the sectors of activity that fall within this category

6.1.1
Throughout this document a series of problems and
challenges faced by the creative industries of Europe, and iden-
tified through a variety of studies and analyses conducted over
a period of several years, has been listed.

6.1.2
As stated above, the concept of ‘creative industries’
encompasses very different types of culture-related production.
Moreover, each sector of activity presents its own specific
issues and interests, making it difficult to simplify the problems
facing the creative industries as a whole and the solutions to
them.

6.1.3
It is therefore necessary to establish which activities
fall within the scope of the creative industries in order to iden-
tify the specific problems affecting each sector of activity and
solutions that can be applied in practical terms to each one.

6.1.4
In point 4 of this opinion, the Committee states what
it means by the term ‘the creative industries’ and the sectors
falling within it. Given the huge diversity of sectors, each
affected by widely varying issues, the Committee must adopt a
broad and cross-cutting approach to the major challenges
affecting either the creative industries as a whole or more than
one of the sectors of activity identified in the opinion.

6.2 Challenges arising from linguistic diversity

In all of the analyses carried out, the linguistic diver-
6.2.1
sity of Europe stands out as both a strength and a weakness at
the same time. It is a strength in that it represents a host of
different forms of expression, each of which conveys the most
positive aspects of the culture from which it originates. And
yet it is a weakness, not from a cultural point of view but
rather in terms of the industry itself, in that it renders produc-
tion more costly and is an obstacle to distribution. While it is
only logical that this situation should arise within a multilin-
gual Europe, the Committee believes that the authorities of the
Union and of the states and regions of Europe must succeed in
strengthening this diversity whilst at the same time supporting
all measures and studies required to overcome this weakness.

(14) OJ C 10, 14.1.2004.

(15) http://europa.eu.int/comm/culture/eac/archive/consult_pub_en/html

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6.3 Specific problems affecting businesses in the cultural sector

h) Low investment in promotion and publicity at European

and international level.

6.3.1
Since this is a sector that covers many different
spheres of activity, the problems faced by businesses concerned
with cultural production are very diverse. A single standard
should be drawn up so that uniform statistics can be compiled
on the creative industries throughout Europe. On the basis of
such data, a joint action plan can be devised which refers to
both the individual sectors and the regions and in which goals,
strategies and measures are defined.

the North-American

6.3.2 While large-scale mergers are under way in the
publishing sector, the audiovisual sector remains excessively
fragmented and is therefore in no position to take on its major
competitor,
industry.
Throughout this document as well as during the debates held
by the study group responsible for drawing up this opinion,
and in the Resolution of the European Parliament drafted by
MEP Myrsini Zorba, some common elements come to the fore
as the essential challenges still faced by the creative, and above
all the audiovisual, industries. These challenges are essentially
as follows:

audiovisual

a) A chronic investment deficit coupled with an evident
inability to attract financial resources, jeopardising commer-
cial viability of businesses.

b) Poor economic investment in the planning and implementa-
tion of audiovisual projects undermining the profitability of
productions and reducing capacity for future investment.

c) Insufficient capitalisation of businesses which in turn
weakens their international industrial development strategy.

d) Lack of regulations covering such areas as taxation, particu-
larly where value added tax is concerned, which is applied
in many different ways depending on the cultural product
and Member State concerned.

e) The absence of any real regulatory framework within which
to dismantle obstacles to labour mobility for artists and
other creative performers. More obstacles remain to the free
movement of citizens than to that of goods,
if cultural
products may be considered as such.

f) Problems linked to poor distribution compared to the US
and scarce transnational dissemination of cultural products
combined with the difficulties of drawing up catalogues of
those works or lists of those productions available for distri-
bution. These problems affect businesses linked to the
audiovisual sector and book and music publishing.

g) The insufficient size of the market, essentially owing to the
fragmented and compartmentalised nature of both national
and regional markets, and the variety of languages viewed
in purely industrial terms, since it entails higher production
costs and distribution difficulties, which in turn hampers the
transnational dissemination of cultural products across
Europe.

i) An increase in pirating and illegal use of brand names in
the audiovisual and music sector. This situation could
take
become intolerable for businesses. Copyright must
precedence over the right to reproduction for private use.
The European Economic and Social Committee's Section for
the Single Market, Production and Consumption has drawn
up an Opinion on the Proposal for a Directive of the Euro-
pean Parliament and of the Council on measures and proce-
dures to ensure the enforcement of intellectual property
rights. (16)

6.4 Challenges related to globalisation

6.4.1
The Committee feels that one of the major problems
faced by the creative industries and, in particular, the audiovi-
sual and music industries of the European Union is the conti-
nuing globalisation of the market for the trade in cultural
products. The strength of
the North American industry is
evident. The commercial surplus of US audiovisual products is
tremendous in comparison to the European Union.

In order to be able to compete with the United States,
6.4.2
Europe's audiovisual
industry must be imaginative and not
restrictive. Cooperation inside Europe must be strengthened
and a climate created that is favourable to the further develop-
ment of the European sector, promoting its expansion within
Europe itself as well as supporting export beyond the European
borders.

6.5 Problems facing the European Union

In the Committee's view, the European Union cannot
6.5.1
be said to have any global strategy for its creative industries. In
order to support them, a cultural policy must be drawn up at
European level, but which upholds in full the principle of subsi-
diarity, coordinating existing national policies so as to deter-
mine a common cultural objective, enabling the emergence of
a competitive European cultural industry.

The Committee considers it to be necessary to draw
6.5.1.1
up such a policy at the level of the European Union complete
with clear strategies that will strengthen the European Cultural
Area and promote European culture outside the European
Union.

6.5.2
Cultural policy affects a great many areas and must
connect other Community policies to each other in order to
create synergies that will support all efforts made in a clear and
precise manner. Currently, the projects and initiatives under-
taken in this area are spread across the various programmes
listed in this document, each of which is making unquestion-
able progress on an individual basis. However, by coordinating
these projects, synergies could be created that would in turn
enable an even better result. Decentralisation resulting from the
wide reach of cultural policy must in no case lessen the effi-
ciency with which the objectives set are reached.

(16) COM(2003) 46 final

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6.5.3
The creative industries of the European Union could
make an important contribution to achieving the Lisbon objec-
tives regarding employment creation.

awareness of European history and culture, boost the dissemi-
increase the
nation of culture across Europe and worldwide,
value of heritage with a European dimension and promote
intercultural dialogue.

6.5.3.1
The budget appropriation for measures to support
culture and the creative industries is a problem that must be
dealt with by the European Union. The budget for the various
programmes directly linked to culture and the audiovisual
industries as well as for projects that fall within the scope of
other programmes that touch on the area of culture is insuffi-
cient to provide a fresh boost to the audiovisual sector in par-
ticular and the creative industries in general. It falls to the Euro-
pean institutions to determine which of the production sectors
has the greatest
influence and are expected to create the
greatest number of jobs, then to offer clear support to the
sector of the creative industries which, through its many facets,
is offering increasingly attractive possibilities for growth.

7. The potential contribution to be made by Europe to

finding long-term solutions to these challenges

reiterating the opinions

already stated by the
Without
Committee throughout
this document and, more precisely,
under points 5 and 6, the following observations may be made
regarding how to address some of the problems faced by the
creative industries.

7.1 A cultural policy for the European Union

7.1.1
The Committee feels that a cultural policy drawn up at
European level should be based on promoting access for citi-
zens of the Union to greater awareness of the cultural identity
that unites them, on restoring Europe's defining values, and on
familiarity with the cultural diversity of the different regions of
Europe in order to learn to live in diversity.

7.1.2
The Committee therefore shares the opinion expressed
in the European Parliament's Resolution of 4 September 2003,
according to which culture is an essential and unifying element
in the everyday lives and identities of the citizens of Europe.

A common cultural policy for the European Union
7.1.3
must not, however, interfere with existing responsibilities for
culture at the regional and/or Member State levels, but rather
boost culture and promote it as a unifying force.

7.2.4
consideration be given to the following initiatives:

these reasons,

the Committee proposes

For

that

— the introduction of incentives to promote artistic creation
and provide artists with the tools they need to ensure their
works can reach the public;

— backing for exchanges of live performances and extending

tours across national boundaries;

— a support system so that audiovisual productions can be
broadcast over the Internet, satellite television and specialist
TV channels; and

— closer links between the creative industries and research
and technological development, so as to be able to offer
innovative products and services with higher added value.

7.3 Definition of the creative industries

The Committee feels there can be no discussion of the
7.3.1
creative
scope,
industries without
however wide this may be: restrictive criteria are unnecessary,
and the list may remain open-ended.

first determining their

The huge diversity of sectors that

7.3.2
fall within the
concept of ‘the creative industries’ presents a range of issues
that are as varied as the sectors themselves. In order to be able
to identify the problems affecting the creative industries as a
whole, and each specific sector, and possible solutions to them,
the Committee believes it is necessary to define what is meant
by ‘the creative industries’ and which sectors of creative and
productive activity fall within this category.

7.3.2.1
listing a series of criteria in point 4 of this opinion.

The Committee has contributed towards this by

7.3.3 With this in mind and despite the wide-reaching
nature of cultural policy, the measures taken to support the
cultural sector should be based on an inclusive, global strategy.

7.2 A European Cultural Area

7.4 Support for the creative industries

The Committee fully agrees with the resolution of 5
7.2.1
September 2001,
in which the European Parliament argued
that the cultural dimension of the Union should be strength-
ened for the future, both in political and budgetary terms,
boosting cooperation between the Member States in order to
create a ‘European Cultural Area’.

7.2.2
The creation of a European Cultural Area would
benefit the Union on two counts: firstly it would enhance the
cultural wealth of Europe, and secondly it would bring
economic and social advantages through the development of
the creative industries.

7.4.1
In accordance with Article 157, it falls to the Euro-
pean Union to create an environment that is favourable to the
development of the creative industries, as with all other sectors
of industry, enabling the latter to benefit from the findings of
research, technological progress, better access to funding and
the advantages of cooperation within a European Cultural
Area.

7.4.1.1
The creative industries generally lack a model for
access to funding which suits the sector's requirements. Banks
and the financial services sector generally look upon the crea-
tive industries as high risk enterprises.

7.2.3
in the
Cooperation between the various players
cultural field is helping to create such a European Cultural
Area, as well as to develop artistic and literary creation, raise

7.4.1.2
A loan guarantee system would cover all or part of
the risk assumed by a financial body in granting finance to a
creative industry which might prove unable to repay the loan.

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7.4.1.3
The introduction of Community support might be
considered in this connection under the aegis of the European
Investment Bank, with European Commission involvement, and
channelled through selected financial
intermediaries in the
Member States.

The Commission's initiative for a Community action
7.4.1.4
programme to promote bodies active at European level in the
field of culture should also be mentioned here.

7.4.2
The challenges linked to the problems faced by busi-
nesses in the cultural sector must be analysed in depth and
solutions must be found to bring an end to anomalies. This has
not yet been achieved in the audiovisual sector, where the
same problems are identified over and over again but no
lasting solution has been found.

7.4.3
The Commission and the Member States must take the
necessary measures to ensure that people working in the crea-
tive industries can enjoy the same freedom of movement as
their products as well as freedom of establishment, in accord-
ance with the provisions of the Treaty.

7.4.4
Given that some of the problems facing operators in
these sectors stem from their lack of management skills and
knowledge, or from the fact that these are difficult to access,
the Commission and the Member States should provide the
necessary resources
the creative industries
receive assistance, information and training. The latter should
be similar to that which is offered to SMEs but specifically
adapted to the creative industries. This would involve extending
initiatives of the Media Desk type to other areas.

to ensure that

7.5 Cultural education and awareness-raising

7.5.1
The creative industries need above all an audience,
spectators, listeners and consumers. The general public, in par-
ticular young people, need to be made more aware of and take
a greater enjoyment in cultural products. It is therefore neces-
sary to promote and step up actions in the area of education
for culture particularly in schools. An open-minded attitude to
culture and the diversity of the European cultural heritage can
be particularly well communicated in the home and at school.

7.5.2
Public authorities and schools play an important role
in this. Television and radio, publicly and privately owned
media that are present in every home, must increase culture's
attractiveness by broadcasting programmes
that promote
cultural education and make the most of the cultural heritage.

7.5.3
A platform should be established at European level to
put joint measures in place to raise awareness and to link up
national initiatives.

Brussels, 28 January 2004.

7.6 Support for artists and other creative performers

7.6.1
Both the Commission and the Member States must
work together to break down all barriers and other difficulties
that prevent the free movement of artists and other creative
performers. Both cultural goods and the people who create,
write and interpret them must be able to move freely.

7.6.2
As such, and with a view to finding a solution to the
many problems affecting artists and other creative performers,
the Section shares the opinion outlined in the European Parlia-
ment's Resolution of 4 September 2003 concerning the crea-
tion of a ‘statute of the artist’ for artists which would offer
them social protection,
facilitate their mobility, and make
specific reference to the applicable legislation governing intel-
lectual property rights.

7.6.3
Small and micro enterprises in the creative industries
should also receive support for developing their business activ-
ities, through cooperation platforms being set up and appro-
priate further training being offered. It can help these firms to
receive assistance at exhibitions, trade fairs, presentations and
business missions so that they can operate on international
markets.

7.7 Cultural industry, freedom and pluralism

7.7.1
Anyone living in a country with strong democratic
institutions will understand the true meaning of the statement:
‘culture sets us free’.

7.7.2
Strengthening culture and promoting free access to
culture for all citizens is therefore essential to ensuring full
respect for the right to freedom of expression and information
enshrined in Article 11 of the EU's Charter of Fundamental
Rights.

Beyond the economic and social dimension,

7.7.3
the
importance of the cultural industry thus lies also in its potential
to promote European democratic values. Not least through
updating the legal framework, it is therefore essential to ensure
the competitiveness and pluralism of the cultural industry in
the face of the gradual globalisation of markets, the growing
convergence of the media encouraged by digital technology,
and the gradual concentration of the groups which own the
industry.

7.7.4
It is for this reason that the section wishes once again
to express its support for all European initiatives and proposals
intended to defend the pluralism of information and culture
and ensure that there are checks on any concentration.

The President

of the European Economic and Social
Committee

Roger BRIESCH

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APPENDIX

to the Opinion of the European Economic and Social Committee

The following amendments, which received at least one quarter of the votes cast, were rejected in the course of the
discussion:

New point 2.1.1.3

‘What constitutes culture is in the eye of the beholder, so it is difficult to give a clear-cut definition. Culture also
includes all types of sporting events, and all those activities pursued by people across Europe in various types of
association, such as folk music, folk dance, and arts and crafts.’

Result of the vote:

For: 16, against: 37, abstentions: 7.

New point 2.1.1.4

‘We in Europe also have a duty to protect and advance the specific culture of the Sami people and of other indi-
genous and minority populations. In this context, language is particularly important.’

Result of the vote:

For: 21, against: 44, abstentions: 9.

New point 2.1.2.1.

‘Culture is not just a matter of performers but of users, too. There is a huge imbalance in access to culture, and this
is a key issue for cultural policy. Every citizen must have the right and opportunity to be both performer and user
of culture.’

Result of the vote:

For: 30, against: 36, abstentions: 4.

New point 4.2.2.2

‘In an increasingly multicultural Europe, it is particularly important to safeguard the specific cultures of the new
Member States’.

Result of the vote:

For: 26, against: 31, abstentions: 8.