Common Position (EC) No 13/2006 of 24 July 2006 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Decision of the European Parliament and of the Council concerning the implementation of a programme of support for the European audiovisual sector (MEDIA 2007)
Date: 2006-07-24
Institutions: Council of the European Union
Subjects: EU action, EU financing, European audiovisual area, audiovisual communications policy, audiovisual industry, cultural promotion

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Official Journal of the European Union

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I

(Information)

COUNCIL

COMMON POSITION No 13/2006

adopted by the Council on 24 July 2006

with a view to adopting a Decision No …/2006/EC of the European Parliament and the Council of
… concerning the implementation of a programme of support for the European audiovisual sector
(MEDIA 2007)

(2006/C 251 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

(2)

Having regard to the Treaty establishing the European Com-
munity, and in particular Articles 150(4) and 157(3) thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Economic and
Social Committee, (1)

(3)

It is also necessary to promote active citizenship and to
do more to ensure respect for the principle of human
dignity, promote equality between men and women and
combat all
forms of discrimination and exclusion,
including racism and xenophobia.

All actions adopted under this programme should be
compatible with the Charter of Fundamental Rights of
the European Union and,
in particular, Article 11
thereof on freedom of expression and media pluralism.

Having regard to the Opinion of
Regions, (2)

the Committee of

the

Acting in accordance with the procedure referred to in Article
251 of the Treaty, (3)

Whereas:

(1)

The European audiovisual sector has a key role to play
in the emergence of European citizenship because it is
one of the principal vectors for conveying the Union's
common and shared fundamental, social and cultural
values to Europeans and especially young people. Com-
munity support
is designed to enable the European
audiovisual sector to promote intercultural dialogue,
increase mutual awareness amongst Europe's cultures
and develop its political, cultural, social and economic
potential, which constitutes genuine added value in the
task of making European citizenship a reality. Such
support is intended to enhance competitiveness and, in
particular, to increase the market share in Europe of
non-national European works.

(1) OJ C 255, 14.10.2005, p. 39.
(2) OJ C 164, 5.7.2005, p. 76.
(3) Opinion of the European Parliament of 25 October 2005 (not yet
published in the Official Journal), Council Common Position of 24
July 2006 and Position of the European Parliament of … (not yet
published in the Official Journal).

(4)

Article 22 of the said Charter states that the Union is to
respect cultural and linguistic diversity. It is, therefore,
necessary to pay attention to the specific needs of the
smaller Member States and those with more than one
linguistic area.

(5)

Community support for the audiovisual sector takes into
account Article 151 of the Treaty.

(6)

Community support for the audiovisual sector is also in
keeping with the new strategic aim defined for the
Union by the Lisbon European Council of 23 and 24
March 2000, namely to boost training, employment,
economic reform and social cohesion in a knowledge-
based economy. In its conclusions, the European Council
industries create added value by
stated that
exploiting and networking European cultural diversity’.
This approach was confirmed in the conclusions of the
Brussels European Council of 20 and 21 March 2003.

‘content

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(7)

Community support for the audiovisual sector is based
on the considerable experience acquired in the MEDIA I,
MEDIA II, MEDIA Plus and MEDIA — Training
programmes (1), which have helped the European audio-
visual industry to develop since 1991, as has emerged
clearly in the evaluation of these programmes.

(11)

(8)

The results obtained showed that Community action
should concentrate mainly:

The preparatory action ‘Growth and Audiovisual:
i2i
Audiovisual’, which supplements the MEDIA Plus and
MEDIA Training programmes, marked a further stage in
implementing the policy of Community support for the
audiovisual sector. It was intended specifically to provide
a remedy for the problems of access to funding of small
and medium sized enterprises (SMEs) in this sector. The
evaluation of ‘Growth and Audiovisual: i2i Audiovisual’
confirmed that it met the sector's needs and confirmed
the need to pursue Community action along these lines
but that it should be more closely geared towards the
specific needs of the sector.

— upstream of audiovisual production, on the develop-
ment of European audiovisual works and on the
acquisition and improvement of audiovisual skills,
the latter needing to be seen as an integral part of
the audiovisual pre-production process,

(12)

— downstream of audiovisual production, on distribu-
tion, cinema exhibition and promotion of European
audiovisual works,

— on digitisation making a decisive contribution to
strengthening the audiovisual sector and on its being
a central feature of MEDIA 2007. Support for digital
services and European catalogues is one of
the
programme's priorities in order to overcome the
fragmentation of the European audiovisual market.

The European audiovisual sector is characterised by its
considerable potential for growth, innovation and dyna-
mism, by the fragmentation of the market as a function
of cultural and linguistic diversity and, consequently, by
a large number of SMEs and very small enterprises with
chronic undercapitalisation. For the purposes of imple-
menting Community support, the specific nature of the
audiovisual sector should be taken into account and it
should be ensured that administrative and financial
procedures in relation to the amount of support are
simplified as far as possible and adapted to the aims
pursued and the sector's practices and requirements.

(9)

(10)

The Media programme should encourage authors (script-
writers and directors) in the creative process and encou-
rage them to develop and adopt new creative techniques
which will strengthen the innovative capacity of the
European audiovisual sector.

There is more than one platform of digitisation in the
projections of films, depending on different uses, users
and needs. Pilot projects of the MEDIA programme are a
test ground for future developments in the audiovisual
sector.

(1) Programmes which were established by:

— Council Decision 90/685/EEC of 21 December 1990 concerning
the implementation of an action programme to promote the
development of
industry (Media)
the European audiovisual
(1991 to 1995) (OJ L 380, 31.12.1990, p. 37) (MEDIA I),

— Council Decision 95/563/EC of 10 July 1995 on the implemen-
tation of a programme encouraging the development and distri-
bution of European audiovisual works (Media II — Development
and distribution) (1996-2000) (OJ L 321, 30.12.1995, p. 25)
and Council Decision 95/564/EC of 22 December 1995 on the
implementation of a training programme for professionals in
the European audiovisual programme industry (Media II —
Training) (OJ L 321, 30.12.1995, p. 33) (MEDIA II),

— 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)
(2001-2005) (OJ L 336, 30.12.2000, p. 82. Decision as last
amended by Regulation (EC) No 885/2004 (OJ L 168, 1.5.2004,
p. 1)) (MEDIA Plus), and

— Decision No 163/2001/EC of the European Parliament and the
Council of 19 January 2001 on the implementation of a training
in the European audiovisual
programme for professionals
programme
(2001-2005)
(OJ L 26, 27.1.2001, p. 1). Decision as last amended by Regu-
lation (EC) No 885/2004) (MEDIA — Training) respectively.

(MEDIA — Training)

industry

(13)

Throughout the EU one major obstacle to competition is
an almost complete lack of companies specialising in
providing loan financing in the audiovisual sector.

(14)

(15)

(16)

for the audiovisual sector,
of

The Commission and Member States should review their
in particular the
support
results
and
Audiovisual: i2i Audiovisual’, to establish to what extent
future support can simplify the development of specialist
offers for SMEs in terms of loan financing.

preparatory

‘Growth

action

the

Loan finance systems that have been developed in the
Member States to promote national audiovisual projects
and to mobilise private capital should be examined to
see whether such capital could be made available for
non-national European projects.

Increased transparency and dissemination of information
concerning the European audiovisual market can make
operators in the sector, and especially SMEs, more
competitive. This could encourage private investors'
confidence by improving understanding of the industry's
for Community
potential. This also makes it easier
action to be evaluated and followed up. Participation by
the European Union in the European Audiovisual Obser-
vatory should help it to achieve these aims.

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(17)

(18)

(19)

In a Community of 25 Member States cooperation is
increasingly becoming a strategic response to strengthen
the competitiveness of the European film industry. There
is therefore a need for greater support for projects for
EU-wide networks at all MEDIA programme levels —
training, development, distribution and promotion. This
applies in particular to cooperation with players from
the Member States which joined the European Union
after 30 April 2004. It should be emphasised that any
strategy for cooperation between players in the audiovi-
sual sector should comply with the Community's compe-
tition law.

for

cinema

support

at European, national,
Public
regional or local
to overcome the
sector's structural difficulties and allow the European
audiovisual industry to meet the challenge of globalisa-
tion.

is essential

level

European Union accession countries and those EFTA
countries which are parties to the EEA Agreement are
in Community
recognised as potential participants
programmes
agreements
concluded with these countries.

in accordance with the

(20)

Cooperation between MEDIA and Eurimages needs to be
strengthened, but without this leading to integration in
financial and administrative matters.

The European Council in Thessaloniki of 19 and 20 June
2003 adopted ‘The agenda for the Western Balkans:
Moving towards European integration’, providing that
Community programmes should be open to countries in
the process of stabilisation and association on the basis
framework agreements to be signed between the
of
Community and these countries.

The other European countries which are parties to the
Council of Europe Convention on Transfrontier Televi-
sion are an integral part of the European audiovisual
area and should therefore be enabled, if they wish and
taking into account budgetary considerations or priori-
ties of their audiovisual industries, to participate in this
programme or benefit under a more limited cooperation
formula on the basis of supplementary appropriations
and specific arrangements in accordance with conditions
to be laid down in the agreements between the parties
concerned.

(21)

(22)

(23)

(24)

(25)

(26)

(27)

(28)

(29)

Suitable measures should be implemented to prevent
irregularities and fraud and to recover funds which have
been lost or transferred or used improperly.

This Decision lays down, for the entire duration of the
programme, a financial envelope constituting the prime
reference, within the meaning of point 37 of the Interin-
stitutional Agreement of 17 May 2006 between the
European Parliament, the Council and the Commission
on budgetary discipline and sound financial manage-
ment (1), for the budgetary authority during the annual
budgetary procedure.

The measures necessary to the implementation of this
Decision should be adopted in accordance with Council
Decision 1999/468/EEC of 28 June 1999 laying down
the procedures for the exercise of implementing powers
conferred on the Commission. (2)

The arrangements for monitoring and evaluating actions
should include detailed annual reports as well as specific,
measurable, achievable, relevant and time-bound objec-
tives and indicators.

Provision needs to be made for measures governing the
transition from the MEDIA Plus and MEDIA — Training
programmes to the programme established by this Deci-
sion.

Since the objectives of this Decision cannot be suffi-
ciently achieved by the Member States and can therefore,
by reason of the scale and effects of the action, be better
achieved at Community level,
the Community may
in accordance with the principle of
adopt measures,
subsidiarity as set out in Article 5 of the Treaty.
In
accordance with the principle of proportionality, as set
out in that Article, this Decision does not go beyond
what is necessary in order to achieve those objectives,

HAVE DECIDED AS FOLLOWS:

CHAPTER I

GLOBAL OBJECTIVES AND BUDGET

Article 1

Cooperation with non-European third countries devel-
oped on the basis of mutual and balanced interests may
create added value for the European audiovisual industry
in terms of promotion, market access, distribution, disse-
mination and exhibition of European works in those
countries. Such cooperation should be developed on the
supplementary appropriations and specific
basis of
arrangements
to be agreed upon with the parties
concerned.

Global objectives and priorities of the programme

1.
This Decision establishes a programme for support to the
European audiovisual sector, hereinafter referred to as the
‘programme’, for a period running from 1 January 2007 to
31 December 2013.

(1) OJ C …
(2) OJ L 184, 17.7.1999, p. 23.

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2.
The audiovisual sector is an essential vector for conveying
and developing European cultural values and for creating
highly skilled future-oriented jobs. Its creativity is a positive
factor for competitiveness and cultural appeal with the public.
The programme is intended to strengthen the audiovisual
sector economically to enable it to play its cultural roles more
effectively by developing an industry with powerful and diversi-
fied content and a valuable and accessible heritage and to add
value to national support.

The global objectives of the programme are to:

(a) preserve and enhance European cultural and linguistic
diversity and its cinematographic and audiovisual heritage,
guarantee its accessibility to the public and promote inter-
cultural dialogue;

(b) increase the circulation and viewership of European audio-
visual works inside and outside the European Union,
including through greater cooperation between players;

(c) strengthen the competitiveness of the European audiovisual
sector in the framework of an open and competitive Euro-
pean market
including by
favourable to employment,
promoting links between audiovisual professionals.

(d) following and supporting market developments with regard
to digitisation, including the promotion of attractive digital
catalogues of European films on digital platforms.

Article 2

The financial envelope

1.
The financial envelope for implementing this programme
is fixed at EUR 671
for the period set out in Article 1(1)
million (1). The indicative breakdown of this amount according
to areas is reflected in point 1.4 of Chapter II of the Annex.

2.
The annual appropriations shall be authorised by the
budgetary authority within the limits of the financial frame-
work.

CHAPTER II

SPECIFIC OBJECTIVES UPSTREAM OF AUDIOVISUAL
PRODUCTION

Article 3

In order to achieve these objectives, the programme shall

3.
support:

Acquisition and improvement of skills in the audiovisual
field

(a) upstream of audiovisual production: the acquisition and
improvement of skills in the audiovisual field and the devel-
opment of European audiovisual works;

In the field of acquisition and improvement of skills, the objec-
tives of the programme shall be to:

(b) downstream of audiovisual production: the distribution and

promotion of European audiovisual works;

(c) pilot projects to ensure that

the programme adjusts to

market developments.

The priorities in the areas for intervention set out in para-

4.
graph 3 shall be as follows:

(a) fostering creativity in the audiovisual sector and knowledge
and dissemination of Europe's cinematographic and audio-
visual heritage;

(b) strengthening the structure of the European audiovisual

sector, particularly SMEs;

(c) reducing the imbalances

in the European audiovisual
market between high audiovisual production capacity coun-
tries and countries or regions with low audiovisual produc-
tion capacity and/or a restricted geographic and linguistic
area;

1. strengthen the skills of European audiovisual professionals
in the fields of development, production, distribution/disse-
mination and promotion, in order to improve the quality
and potential of
European audiovisual works. The
programme shall support notably action in the following
areas:

(a) scriptwriting techniques with the aim of increasing the
quality of European audiovisual works and their poten-
tial circulation;

(b) economic,

financial and commercial management of
production, distribution and promotion of audiovisual
works to enable European strategies to be devised right
from the development phase;

(c) inclusion upstream of digital technologies for produc-
and

tion, post-production, distribution, marketing
archiving of European audiovisual programmes.

Steps shall also be taken to ensure the participation of
professionals and trainers from countries other than those
in which training activities supported under point 2(a), (b)
and (c) take place.

(1) This amount is based on 2004 figures and shall be subject to tech-

nical adjustment to take account of inflation.

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2.

improve the European dimension of audiovisual training
activities by:

(a) support for the networking and mobility of European

training professionals, in particular:

— European film schools,

— training institutes,

— partners in the professional sector.

(b) training for trainers;

(c) support for film schools;

(d) adoption of coordination activities and of promotion of
the bodies supported in relation to the activities set out
in point 1.

3. enable, through special scholarships, professionals from the
Member States which acceded to the European Union after
30 April 2004 to take part in the training activities set out
in point 1.

The measures set out in points 1, 2 and 3 shall be implemented
in accordance with the provisions in the Annex.

Article 4

Development

In the development

1.
programme shall be to:

sector,

the objectives of

the

(a) support the development of production projects intended
for the European and international market, submitted by
independent production companies;

(b) support the elaboration of financial plans for companies
in particular the

and projects for European productions,
financing of co-productions.

2.
The Commission shall take steps to ensure that the activ-
ities supported in the field of improving professional skills and
those set out in paragraph 1 complement each other.

The measures set out in paragraphs 1 and 2 shall be

3.
implemented in accordance with the provisions in the Annex.

CHAPTER III

SPECIFIC OBJECTIVES DOWNSTREAM OF AUDIOVISUAL
PRODUCTION

Article 5

Distribution and dissemination

In the field of distribution and dissemination, the programme's
objectives shall be to:

(a) strengthen European distribution by encouraging distribu-
tors to invest in the co-production, acquisition and promo-
tion of non-national European films and to set up coordi-
nated marketing strategies;

(b) improve the circulation of non-national European films on
the European and International markets by incentive
measures for export, distribution on any medium and
cinema exhibition;

(c) promote the

transnational dissemination of European
audiovisual works produced by independent production
companies by encouraging cooperation between broadcas-
ters on the one hand and independent producers and distri-
butors on the other;

(d) encourage the digitisation of European audiovisual works
and the development of a competitive digital market place;

(e) encourage cinemas to exploit the possibilities offered by

digital distribution.

The measures set out under points (a) to (e) shall be imple-
mented in accordance with the provisions in the Annex.

Article 6

Promotion

In the field of promotion, the objectives of the programme
shall be to:

(a) improve the circulation of European audiovisual works by
ensuring that the European audiovisual sector has access to
European and international professional markets;

(b) improve the European and international public's access to

European audiovisual works;

(c) encourage common actions between national
audiovisual programme promotion organisations;

film and

(d) encourage the promotion of Europe's cinematographic and
audiovisual heritage and the improvement of the public's
access to it at both European and international level.

The measures set out in points (a) to (d) shall be implemented
in accordance with the provisions in the Annex.

CHAPTER IV

PILOT PROJECTS

Article 7

Pilot projects

1.
The programme may support pilot projects to ensure that
it adapts to market developments, with a particular emphasis
on the introduction and utilisation of information and commu-
nication technologies.

For

the purposes of

the
2.
Commission shall be advised by technical advisory groups
made up of experts designated by the Member States in
response to a proposal by the Commission.

implementing paragraph 1,

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CHAPTER V

ARRANGEMENTS FOR IMPLEMENTING THE PROGRAMME
AND FINANCIAL PROVISIONS

Without prejudice to the agreements and conventions to which
the Community is a contracting party, enterprises which
benefit from the programme shall be owned and shall continue
to be owned, whether directly or by majority participation, by
Member States and/or Member State nationals.

Article 8

Provisions concerning third countries

1.
The programme shall be open to the participation of the
following countries as long as the required conditions are met
and supplementary appropriations are received:

(a) EFTA States which are members of the EEA, in accordance

with the provisions of the EEA agreement;

(b) accession countries benefiting from a strategy for pre-acces-
sion to the European Union in accordance with the general
principles and general conditions and arrangements for
these countries participating in Community programmes
laid down in the framework agreement and the Association
Councils' decisions respectively;

(c) the Western Balkan countries in accordance with arrange-
ments made with these countries following framework
agreements to be established governing their participation
in Community programmes.

2.
The programme shall also be open to the participation of
States which are parties to the Council of Europe Convention
on Transfrontier Television other than those referred to in para-
graph 1, assuming that supplementary appropriations are
received in compliance with the conditions to be agreed upon
between the parties concerned.

Opening up of the programme to European third coun-
3.
tries referred to in paragraphs 1 and 2 may be subject to prior
examination of the compatibility of their national
legislation
with Community legislation, including Article 6(5) of Council
Directive 89/552/EEC of 3 October 1989 on the coordination
of certain provisions laid down by Law, Regulation or Adminis-
trative Action in Member States concerning the pursuit of tele-
vision broadcasting activities (1). This provision does not apply
to actions under Article 3 of this Decision.

4.
The programme shall also be open to cooperation with
other third countries which have concluded association or
cooperation agreements with the European Union incorpor-
ating clauses on the audiovisual sector and on the basis of
supplementary appropriations and specific arrangements to be
agreed upon. Western Balkan countries referred to in paragraph
1 that do not wish to participate fully in the programme may
benefit from cooperation with the programme under the condi-
tions provided for in this paragraph.

Article 9

Financial provisions

Legal and natural persons may be the beneficiaries of the

1.
programme.

The Commission may decide, depending on the benefici-
2.
aries and the type of action, whether they may be exempted
from verification of the professional skills and qualifications
required to successfully complete an action or programme of
work. The Commission may also take into account the type of
activity supported, the specific profile of the target public from
the audiovisual sector and the objectives of the programme.

(EC,

by Council Regulation

3.
Depending on the type of action, financial aid may take
the form of grants or scholarships or any other instrument
authorised
Euratom) No
1605/2002, of 25 June 2002, on the Financial Regulation
applicable to the general budget of the European Commu-
nities (2). The Commission may also award prizes for the
programme's activities or projects. Depending on the nature of
the activity, the use of scales of unit costs or flat-rate financing
for contributions of no more than the amount mentioned in
Article 181 of Commission Regulation (EC,
Euratom)
No 2342/2002 of 23 December 2002 laying down detailed
rules for the implementation of Regulation (EC, Euratom) No
1605/2002 (3) may be authorised.

4.
The Commission shall adhere to the proportionality prin-
ciple in respect of administrative and financial requirements,
such as eligibility criteria and financial capacity, with regard to
the size of the grant awarded.

Financial aid awarded under the terms of the programme
5.
may not exceed 50 % of
the operation
supported. However, in the cases expressly provided for in the
Annex, financial aid may be as high as 75 %. Furthermore,
such aid shall be granted whilst ensuring that award procedures
are transparent and objective.

the final costs of

In keeping with the specific nature of

6.
the activities
cofunded and in accordance with Article 112(1) of Regulation
(EC, Euratom) No 1605/2002 (4), the Commission may deem
costs directly linked with implementing the activity supported
to be eligible, even if they were partially incurred by the benefi-
ciary before the selection procedure.

In accordance with Article 113(1) of Regulation (EC,
7.
Euratom) No 1605/2002 and in conjunction with Article 172
of Regulation (EC, Euratom) No 2342/2002, cofunding may be
provided either entirely or partly in kind as long as the value of
the contribution does not exceed the cost actually borne and
duly supported by accounting documents, or the cost generally
accepted in the market in question. Premises made available for
training or promotional purposes may be included in such
contributions.

(1) OJ L 298, 17.10.1989, p. 23. Directive as last amended by Directive
97/36/EC of the European Parliament and the Council (OJ L 202,
30.7.1997, p. 60).

(2) OJ L 248, 16.9.2002, p. 1.
(3) OJ L 357, 31.12.2002, p. 1. Regulation as last amended by Regu-
lation (EC, Euratom) No 1261/2005 (OJ L 201, 2.8.2005, p. 3).

(4) OJ L 248, 16.9.2002, p. 1.

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8.
Any sums reimbursed under the programme, those from
the MEDIA programmes (1991 to 2006) and sums not used by
selected projects shall be allocated to the requirements of the
MEDIA 2007 programme.

Article 12

MEDIA Desks

Article 10

Implementation of this Decision

The Commission shall be responsible for implementing
1.
the programme in accordance with the provisions laid down in
the Annex.

2.
The measures necessary for the implementation of this
Decision relating to the matters referred to below shall be
adopted in accordance with the procedure referred to in Article
11(2):

(a) the general guidelines for all the measures described in the

Annex;

(b) the content of the calls for proposals, the definition of the
criteria and the procedures for the selection of projects;

(c) questions concerning the annual internal breakdown of the
including the breakdown between
improving professional skills,

programme resources,
measures in the fields of
development, distribution/dissemination and promotion;

(d) the arrangements for monitoring and evaluating actions;

(e) any proposal for the allocation of Community funds in
excess of EUR 200 000 per beneficiary and year in the
case of training and promotion, EUR 200 000 in the case
of development and EUR 300 000 in the case of distribu-
tion;

(f) the choice of pilot projects provided for in Article 7.

3.
The measures necessary for the implementation of this
Decision relating to any other matters shall be adopted in
accordance with the procedure referred to in Article 11(3).

Article 11

Committee procedure

1.

The Commission shall be assisted by a committee.

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at two months.

3. Where reference is made to this paragraph, Articles 3 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

4.

The committee shall adopt its rules of procedure.

1.
The European network of MEDIA Desks shall act as an
implementing body for disseminating information on the
programme at national
in particular for cross-border
projects, improving its visibility and stimulating its use, whilst
complying with Article 54(2)(c) and (3) of Regulation (EC,
Euratom) No 1605/2002 as defined at point 2.2 in Chapter II
of the Annex.

level,

2.
Cooperation between MEDIA desks through networks,
especially proximity networks, shall be encouraged in order to
facilitate exchanges and contacts between professionals, public
awareness of key events supported by the programme, as well
as prizes and awards.

3.

The MEDIA Desks shall respect the following criteria:

(a) have an adequate number of staff, with professional and
linguistic capacities appropriate for work in an environ-
ment of international cooperation,

(b) have an appropriate infrastructure, in particular as regards

informatics and communications,

(c) operate in an administrative context which enables them to
carry out their tasks satisfactorily and to avoid conflicts of
interest.

Article 13

Consistency and complementarity

1.
In the implementation of the programme, the Commis-
sion shall, in close cooperation with the Member States, ensure
general consistency and complementarity with other relevant
Community policies, programmes and actions that impinge
upon the training and audiovisual fields.

2.
The Commission shall also ensure coordination between
the programme and other Community programmes in the
training, research and the information
areas of education,
society.

3.
The Commission shall ensure effective liaison between
this programme and programmes and actions in the training
and audiovisual fields being carried out in the framework of
Community cooperation with non-member countries and the
relevant international organisations, in particular the Council of
Europe (Eurimages and the European Audiovisual Observatory,
hereinafter referred to as ‘the Observatory’).

Article 14

Monitoring and evaluation

1.
The Commission shall ensure that the actions covered by
this Decision are subject to prior evaluation, monitoring and
ex-post evaluation. The results of the process of monitoring
and evaluation shall be taken into account in the implementa-
tion of the programme.

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The Commission shall ensure that the programme is evaluated
regularly, externally and independently. In order to evaluate the
programme effectively the Commission may compile data in
order to survey all activities supported by the programme. This
evaluation should take into account the Committee's arrange-
ments for monitoring and evaluation referred to in Article
10(2)(d).

This monitoring process shall comprise drawing up the reports
mentioned in paragraph 2(a) and (c) and specific activities.

The Commission shall present to the European Parlia-
and Social

2.
ment,
Committee and the Committee of the Regions:

the European Economic

the Council,

(a) an interim evaluation report on the results and the qualita-
tive
the
programme no later than three years after the start of the
programme;

implementing

quantitative

aspects of

and

(b) a communication on the continuation of the programme
no later than four years after the start of the programme;

(c) a detailed ex-post evaluation report by 31 December 2015
covering the implementation and results of the programme,
on completion of its implementation.

Article 17

Participation in the European Audiovisual Observatory

For the purposes of implementing Article 16, the European
Union shall be a member of the Observatory throughout the
programme.

The Commission shall represent the European Union in its
dealings with the Observatory.

Article 18

Contribution to meeting the programme's objectives

Participation by the European Union in the Observatory shall
form an integral part of this programme and shall contribute to
meeting its objectives:

(a) by encouraging transparency in the market through an
improved comparability of data collected in the different
countries and ensuring that operators have access to finan-
cial and legal statistics and information, especially on the
Member States which have acceded to the European Union
thereby enhancing the European
after 30 April 2004,
audiovisual sector's ability to compete and develop,

The Commission shall publish and disseminate via the Media
Desks any relevant statistics and analyses.

(b) by enabling the programme to be monitored more effec-

tively and making it easier to evaluate.

Reports produced pursuant to paragraph 2(a) and (c) shall

3.
identify the added value of the programme.

Article 15

Transitional provisions

Activities undertaken before 31 December 2006 on the basis
of Decision 2000/821/EC and Decision No 163/2001/EC shall
continue to be managed until they are terminated in compli-
ance with the provisions of those Decisions.

The
committee provided for by Article 8 of Decision
2000/821/EC and Article 6 of Decision No 163/2001/EC shall
be replaced by the committee provided for under Article 11 of
this Decision.

CHAPTER VI

INFORMATION ON THE EUROPEAN AUDIOVISUAL SECTOR
AND PARTICIPATION IN THE EUROPEAN AUDIOVISUAL
OBSERVATORY

Article 19

Monitoring and evaluation

Monitoring and evaluation of the European Union's participa-
tion in the Observatory shall be carried out within the frame-
work of the monitoring and evaluation of the programme in
accordance with Article 14.

CHAPTER VII

ENTRY INTO FORCE

Article 20

Entry into force

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

It shall apply from 1 January 2007.

Article 16

Done at Brussels,

Information on the European audiovisual sector

The European Union shall contribute to increased transparency
and dissemination of information on the European audiovisual
sector.

For the European Parliament

The President

…

For the Council

The President

…

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ANNEX

CHAPTER I

Operational objectives and actions to be implemented

1.

Acquisition and improvement of skills in the audiovisual field

1.1.

Strengthen European audiovisual professionals' skills in the fields of development, production, distribution/dissemination and
promotion in order to improve the quality and the potential of European audiovisual works

1.1.1. Sc r i ptw r i ti ng tec hn i q u es

Operational objective

— Enable experienced scriptwriters to improve their capacities to develop techniques based on traditional and

interactive methods of writing.

Actions to be implemented

— Support the development, implementation and updating of training modules on identifying the target audi-
ence, editing and development of scripts for an international audience, and the relationship between the
scriptwriter, the script editor, the director, the producer and the distributor, inter alia.

— Support distance learning and encourage exchanges and partnerships associating countries and regions with

low audiovisual production capacity and/or with a restricted linguistic or geographical area.

1.1.2. E conomi c , fi na n ci a l a nd c omm er c i a l ma na g e me nt of p rodu cti on, di stri bu ti on a nd p romoti on

of au di ov i su a l wor ks

Operational objective

— Develop the professionals' ability to grasp and integrate the European dimension into the fields of develop-

ment, production, marketing, distribution/dissemination and promotion of audiovisual programmes.

Actions to be implemented

— Support the development, implementation and updating of training modules in management, taking into

account the European dimension.

— Support distance learning and encourage exchanges and partnerships associating countries and regions with

low audiovisual production capacity and/or with a restricted linguistic or geographical area.

1.1.3. Inc lu si on up str ea m of di g i ta l te c hnolog i e s f or the pr odu c ti on , post-p rodu cti on, di str i bu ti on ,

ma r ke ti n g a nd a r ch i v i ng of E u r op ea n a u di ov i su a l p r og r a mme s

Operational objective

— Develop the professionals' capacity to use digital technologies, in particular in the fields of production, post-

production, distribution, marketing, archiving and multimedia.

Actions to be implemented

— Support the development, implementation and updating of training modules in digital audiovisual technolo-

gies.

— Support distance learning and encourage exchanges and partnerships associating countries and regions with

low audiovisual production capacity and/or with a restricted linguistic or geographical area.

1.2.

Improve the European dimension of audiovisual training activities

1.2.1. Su p por t f or th e ne tw or ki ng a nd mobi li ty of Eu r ope a n tr a i ni ng pr ofe ssi ona ls,

i n pa rti c ula r

E ur ope an fi lm sc hools, tr ai ni ng i nsti tute s, p ar tne rs of the profe ssional se ctor

Operational objective

— Encourage exchanges and cooperation between existing training institutions and/or activities.

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Action to be implemented

— Encourage the programme beneficiaries to intensify coordination of their training activities,

in particular
those involving further training, in order to develop a European network which can receive Community
support, in particular for cooperation involving players, including television broadcasters.

1.2.2. Tr a i ni ng for tr a i ne rs

Operational objective

— Ensure that trainers are competent.

Actions to be implemented

— Contribute to training for trainers, in particular by distance learning.

1.2.3. Su p por t for fi lm sc hools

Operational objective

— Encourage mobility of cinema students in Europe.

Actions to be implemented

— Encourage mobility scholarships linked to a training project.

— Encourage the development of new talents and professionals through the establishment of a Prize for New

Talent.

1.2.4. Intr odu c ti on of coor di na ti on a nd pr omoti on mea su re s by the bodi e s sup por ted u nde r 1. 2. 1

Operational objective

— Promote coordination and promotion of the projects supported by the programme.

Action to be implemented

— Contribute to the adoption of targeted actions of coordination and promotion of the training activities

supported by the programme.

1.2.5. E na bl e, thr oug h spe c i a l sch ola r shi ps, the pr of essi ona ls fr om the M emb er Sta te s w hi c h h a v e
accede d to the Eur ope an Uni on a fter 30 Apr i l 2004 to take par t i n the tra i ning activi ti es se t
ou t i n 1. 1

Operational objective

— Facilitate the participation by professionals from the Member States which have acceded to the European

Union after 30 April 2004 in the projects supported by the programme.

Action to be implemented

— Contribute to setting up a grant mechanism.

2.

Development

2.1.

Support the development of production projects intended for the European and International market submitted by independent
production companies, in particular SMEs

Operational objectives

— Support the development of European works of the following types: drama, animation, documentary and

multimedia.

— Encourage companies to produce quality works with international potential.

— Encourage companies to use digital technologies in production and distribution right from the development

phase.

— Encourage companies to devise strategies for international screening, marketing and distribution right from

the development phase.

— Enable SMEs to access support for development and tailor actions to meet their needs.

— Enhance complementarity with the actions supported by MEDIA to improve audiovisual professionals' skills.

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Actions to be implemented

— Support the development of audiovisual projects or project catalogues.

— Support digitisation of European audiovisual works right from the development phase.

2.2.

Support the elaboration of financing plans for European production companies and projects, including co-production projects

Operational objectives

— Encourage the elaboration of financing plans by production companies for works of the following types:

drama, animation, documentary and multimedia.

— As a follow-up to the preparatory action ‘Growth and Audiovisual: i2i Audiovisual’, encourage the search for
financial partners at European level to achieve synergy between public and private investors and the devising
of distribution strategies right from the production phase.

Actions to be implemented

— Support the side costs of private financing of production and co-production projects presented by SMEs (such

as financial expenses, insurance and completion guarantee costs).

— Support access by SMEs, especially independent production companies, to companies providing financial
services active in drawing up investment plans for the development and co-production of audiovisual works
with potential for international distribution.

— Encourage financial intermediaries to support the development and co-production of audiovisual works with

potential for international distribution.

— Support cooperation between the national agencies in the audiovisual sector.

3.

Distribution and Dissemination

Horizontal operational objective

— Enhance the cultural and linguistic diversity of European audiovisual works distributed.

Action to be implemented

— Support dubbing and subtitling for distribution and dissemination, through all available channels, in particular
digital channels, of European audiovisual works for the benefit of producers, distributors and broadcasters.

3.1.

Strengthen European distribution by encouraging distributors to invest in the co-production, acquisition and promotion of
non-national European films and to set up coordinated marketing strategies

Operational objective No 1

— Encourage cinematographic distributors to invest in the co-production, acquisition of exploitation rights and

promotion of non-national European films.

Actions to be implemented

— Establish a system of automatic support for European distributors, proportional to cinema admissions for
non-national European films in the Member States taking part in the programme, subject to a ceiling for each
film and adjusted for each country.

— The support thus generated may be used by distributors only for investment in:

— non-national European film co-production,

— the acquisition of exploitation rights of non-national European films,

— editing (copying, dubbing and subtitling), promotion and advertising of non-national European films.

Operational objective No 2

— Encourage European distributors to cooperate with a view to adopting joint strategies on the European

market.

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Action to be implemented

— Establish a system of selective aid for non-national European film distribution intended for European distri-

butor groupings and grant them direct aid where they exist on a permanent basis.

Operational objective No 3

— Encourage cooperation between distributors, producers and sales agents in order to set up international

marketing strategies for European films right from the development phase.

Action to be implemented

— Establish a system of support for the creation of a promotion kit for European cinematographic works
(including a subtitled copy, an international sound track — music and effects — and promotion materials).

Operational objective No 4

— Encourage access to financing of SMEs for distribution and international sale of non-national European works.

Action to be implemented

— Support the side costs (such as financial expenses and insurance) connected with distribution and/or interna-
tional sales activities such as: acquisition of non-national European film catalogues, searching for new markets
for these films, and setting up of permanent groupings of European distributors.

3.2.

Improve the circulation of non-national European films on the European and international markets by incentives measures for
export, distribution on any medium and cinema exhibition

Operational objective No 1

— Encourage cinematographic distributors to invest in appropriate publishing and promotion of non-national

European films.

Actions to be implemented

— Establish a system of selective support to cinematographic distributors for the promotion and marketing of
non-national European films. The selection criteria for the films may include provisions aiming to differentiate
between the projects according to their origin and the size of their budget.

— Grant special support to films of interest for the development of European cultural and linguistic diversity.

— Grant aid for the release of a non-national European works slate over a given period.

Operational objective No 2

— Encourage the screening of non-national European films on the European market, in particular by supporting

the coordination of a cinema network.

Actions to be implemented

— Encourage cinema owners and operators to screen a significant proportion of non-national European films in
cinemas for first release for a minimum defined period. The support granted to each cinema will be deter-
mined according to the programming and taking into account the number of tickets sold for non-national
European films over a reference period.

— Contribute to the development of educational and awareness-raising activities for young cinema-goers.

— Support the creation and the consolidation of a European cinema owners' network developing common

actions of this type.

Operational objective No 3

— Encourage international sales and export of European films, particularly non-national European films within

Europe.

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Action to be implemented

— Establish a support system for European companies distributing cinema films internationally (sales agents)
according to their performance on the market over a given period. This support will have to be invested in
the acquisition of new non-national European films and their promotion on the European and international
markets.

3.3.

Promote the transnational broadcasting of European audiovisual works produced by independent production companies by
encouraging cooperation between broadcasters on the one hand, and independent producers and distributors on the other

Operational objective No 1

— Encourage the broadcasting of non-national European audiovisual works from independent production

companies.

Action to be implemented

— Encourage independent producers to produce works (drama, documentary and animation) involving the parti-
cipation of at least three broadcasters from several Member States. The selection criteria for the beneficiaries
will include provisions aiming to differentiate between the projects according to the size of their budget.
Grant special support to films of interest for the enhancement of Europe's cultural and linguistic diversity and
audiovisual heritage.

Operational objective No 2

— Facilitate access to financing for European independent production companies.

Action to be implemented

— Support the side costs (such as financial costs, insurance and completion guarantee costs) connected with the
production of works (drama, documentary and animation) involving the participation of at least three broad-
casters from several Member States belonging to different linguistic areas.

Operational objective No 3

— Encourage the international distribution of European television programmes made by independent producers.
The distribution of such programmes will require the agreement of the independent producer, who must
receive an appropriate share of the sales revenue.

Action to be implemented

— Establish a system of support for European international distribution companies of audiovisual works (interna-
tional distributors) according to their performance on the market over a given period. Support thus generated
will have to be invested by the international distributors in the acquisition and promotion of new European
works on the European and international markets.

3.4.

Encourage the digitisation of European audiovisual works

Operational objective No 1

— Improve the distribution of non-national European works on digital media for private use (DVD), in particular

by encouraging publishers to cooperate on creating multilingual masters on a European scale.

— Encourage the use of digital technologies in European works (creating digital masters which can be used by

all European distributors).

— Encourage publishers in particular to invest in appropriate promotion and distribution of non-national Euro-

pean audiovisual works.

— Support the multilingualism of European works (dubbing, subtitling and multilingual production).

Actions to be implemented

— Establish a system of automatic support for European cinematographic and audiovisual works publishers on
media intended for private use (such as DVD, DVD-ROM) according to their performance on the market over
a given period. Support thus generated will have to be invested by the publishers in the publishing and distri-
bution of non-national European works on digital media.

— Support the digitisation of content for distribution.

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Operational objective No 2

— Encourage supply of non-national European works for on-line distribution through advanced distribution
services and new media (Internet, video-on-demand, pay-per-view), while developing techniques to securise
online works in order to fight against piracy.

— Encourage the European audiovisual programme industry to adapt to developments in digital technology, in

particular with regard to advanced on-line distribution services.

Actions to be implemented

— Encourage European companies (on-line access suppliers, special-interest channels, etc.) — by measures to
digitise works and create promotion and publicity material on digital media — to create European works
slates in digital format intended for use on the new media.

— Promote the emergence of digital services that carry European catalogues.

3.5.

Encourage cinemas showing a significant percentage of non-national European works to exploit the possibilities offered by
digital distribution

Operational objective

— Encourage cinemas to invest in digital equipment, by facilitating access to credit by cinema owners.

Action to be implemented

— Support the side costs (such as financial expenses and insurance) incurred by cinema owners and operators

for investment in digital equipment.

4.

Promotion

4.1.

Improve the circulation of European audiovisual works by ensuring that the European audiovisual sector has access to the
professional European and international audiovisual markets

Operational objective No 1

— Improve the conditions of access for professionals to trade events and to professional audiovisual markets

inside and outside Europe.

Action to be implemented

— Provide technical and financial assistance in connection with events such as:

— the principal European and international cinema markets,

— the principal European and international television markets,

— thematic markets, particularly for cartoons, documentary, multimedia and new technologies.

Operational objective No 2 and action to be implemented

— Encourage and support the constitution of European catalogues and the setting up of databases of European

programme catalogues intended for professionals.

Operational objective No 3

— Encourage support for promotion from the pre-production or production phase.

Actions to be implemented

— Support the organisation of forums for development, financing, co-production and distribution of European

(or mainly European) works and programmes.

— Set up and launch marketing and sales promotion campaigns for European cinematographic and audiovisual

programmes during the production phase.

4.2.

Improve access to European audiovisual works for the European and international public

Operational objectives and actions to be implemented

— Encourage and support audiovisual festivals to screen a majority or significant proportion of European works.

— Prioritise and support festivals contributing to the promotion of works from Member States or regions with
low audiovisual production capacity and of works produced by young Europeans, and enhancing cultural and
linguistic diversity and intercultural dialogue.

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— Encourage and support initiatives for image education organised by festivals for young people, in particular in

close cooperation with schools and other institutions.

— Encourage and support initiatives by professionals, in particular cinema owners, public or commercial televi-
sion channels, festivals and cultural institutions which aim, in close cooperation with the Member States and
the Commission, to organise promotional activities for the general public for European cinematographic and
audiovisual creation.

— Encourage and support the organisation of events with wide media coverage such as prize awards and Euro-

pean Cinema Days.

4.3.

Encourage common actions between national film and audiovisual programme promotion organisations

Operational objective:

— Encourage networking and coordination of European common actions and projects.

Actions to be implemented

— Support the creation of European promotion platforms.

— Support European groupings and umbrella organisations for national and/or regional promotion on the Euro-

pean markets and worldwide.

— Support the networking of festivals, in particular the exchange of programming and of expertise.

— Support the grouping of projects pursuing identical, similar and/or complementary aims.

— Support the setting up of networks of databases and catalogues.

4.4.

Encourage promotion of and access to Europe's cinematographic and audiovisual heritage

Operational objective and action to be implemented

— Encourage and support the organisation of events, in particular those targeting young people, to promote

Europe's cinematographic and audiovisual heritage.

5.

Pilot Projects

Operational objective

— Ensure that the programme adapts to market developments, mainly in connection with the introduction and

use of information and communication technologies.

Actions to be implemented

— Support pilot projects in areas considered likely to be influenced by the introduction and use of new informa-

tion and communication technologies.

— Disseminate widely the results of pilot projects by organising conferences or on- and off-line events to encou-

rage the dissemination of good practices.

CHAPTER II

Arrangements for implementation

1. Community Support

1.1. The share of the Community contribution in the cost of operations supported

The financial contribution from MEDIA may not exceed 50 % of the costs of operations supported, except in the
following cases.

The financial contribution from MEDIA may be up to 60 % of the costs of operations supported:

(a) for training activities in countries or regions with low audiovisual production capacity and/or with a restricted

linguistic or geographical area;

(b) for projects submitted under the development, distribution/dissemination and promotion strands which have

the merit of highlighting the value of European linguistic and cultural diversity;

(c) for actions, amongst those described in point 3 of Chapter I of this Annex (distribution and dissemination),

identified as conforming with the procedure set out in Article 11(2).

The financial contribution from MEDIA may be up to 75 % of the costs of operations supported for training activ-
ities in the Member States which have acceded to the European Union after 30 April 2004. Attention will be
focused on this provision during the mid-term evaluation of the programme.

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1.2. Arrangements for Community support

The Commission shall ensure that the programme is accessible and is implemented in a transparent manner.

Community support is in the form of grants or scholarships.

In the training sector, an appropriate amount of the available funds each year must be allocated to new activities as
far as possible.

1.3. Project selection

The selected projects must comply with:

— the provisions of this Decision and its Annex;

— the provisions of Regulation (EC, Euratom) No 1605/2002 and Regulation (EC, Euratom) No 2342/2002.

1.4. Breakdown of resources

The funds available will be broken down according to the following guidelines:

Acquisition and improvement of skills

approximately 7%

Development

Distribution

Promotion

Pilot projects

Horizontal issues

at least 20%

at least 55%

approximately 9%

approximately 4%

at least 5%

These percentages are indicative and subject to change by the Committee provided for in Article 11 in accordance
with the procedure referred to in Article 11(2).

In order to secure overall efficiency and appropriate implementation of the objectives of the programme, as laid
down in Article 1, Community actions should concentrate on the development of the actions carried out under the
previous programmes cited in recital 7.

All actions shall be reviewed on a yearly basis in accordance with the procedure laid down in Article 10 (2),
allowing the Community to react to the needs and the development of the sector.

In order to secure the overall cultural and industrial objectives of the programme the decision on the annual break-
down of the financial envelope should be based on an ongoing monitoring of the effectiveness of the action lines
in the programme.

2. Communication

2.1. Commission

The Commission may organise seminars, symposia or meetings to help implement the programme and may insti-
tute any suitable information, publication and dissemination measures, particularly in connection with monitoring
and evaluation of the programme. Such activities may be funded by grants or calls for tender or may be organised
and financed directly by the Commission.

2.2. MEDIA desks and MEDIA antennae

The Commission, acting directly in concert with the Member States, shall establish a European network of MEDIA
desks and MEDIA antennae, which will operate as an implementing body at national level in accordance with
Article 54(2)(c) and (3) of Regulation (EC, Euratom) No 1605/2002, notably for the purposes of:

(a) informing professionals in the audiovisual sector about the various types of aid available under European Union

policies;

(b) publicising and promoting the programme;

(c) encouraging the greatest possible participation by professionals in the programme's activities;

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(d) helping professionals to present their projects in response to calls for proposals;

(e) encouraging cross-border cooperation between professionals, institutions and networks;

(f) supporting the Commission in liaising with the various support bodies in the Member States in order to ensure

that the programme's activities complement national support measures;

(g) making data on national audiovisual markets available to interested parties.

3.

Information about the European audiovisual market and participation in the Observatory and possible
cooperation with the Council of Europe's Eurimages Support Fund.

The programme provides the legal basis for the expenditure necessary to monitor Community audiovisual policy
measures.

It provides for the European Union to continue participating in the Observatory. This will ease access to informa-
tion for operators and dissemination in the sector. It will also contribute to greater transparency in the production
process. The programme could likewise enable the European Union to explore possibilities for cooperation
(excluding financial and administrative matters) with the Eurimages Support Fund, with a view to promoting the
competitiveness of the European audiovisual sector on the international market.

4. Management tasks

The programme's financial allocation can also cover expenses pertaining to preparatory, monitoring, control, audit
and evaluation activities, required directly for the management and the realisation of the objectives of the
programme, in particular, studies, meetings, information and publication actions, expenses linked to informatic
networks focusing on information exchange, together with all other technical and administrative assistance expense
that the Commission may have recourse to for the management of the programme. Experts from the technical advi-
sory groups, or other evaluation and selection procedures, may be duly remunerated.

In implementing the Programme, the Commission will ensure compliance with the objectives and priorities set out
in Article 1 and ensure that the participation of professionals in the programme reflects European cultural diversity
in a balanced way.

5. Checks and audits

For the projects selected in accordance with the procedure described in Article 9, a system of random auditing shall
be set up.

Any beneficiary of a grant shall keep at the Commission's disposal for a period of five years following the final
payment all supporting documents on the expenditure incurred. Beneficiaries shall ensure that, if need be, any
supporting document in the possession of partners or members is made available to the Commission.

The Commission, either directly through its staff or through any other qualified, external agency of its choice, is
entitled to carry out an audit on the use of the grant. These audits may be carried out throughout the term of the
contract and for a period of five years from the date of the payment of the balance of the grant. The outcome of
these audits may lead to a decision by the Commission to recover funds.

The Commission's staff and external persons authorised by the Commission shall have suitable access, in particular
to the offices of the beneficiary and to all information needed, including that in electronic form, to carry out the
audits properly.

The Court of Auditors and the European Anti-Fraud Office shall have the same rights, especially of access, as the
Commission.

Moreover, in order to protect the European Communities' financial interests against fraud and other irregularities,
the Commission is authorised to carry out checks and verifications in situ under the present programme, in compli-
ance with Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks
and inspections carried out by the Commission in order to protect the European Communities' financial interests
against fraud and other irregularities (1). If need be, investigations shall be carried out by the European Anti-Fraud
Office and shall be governed by Regulation (EC) No 1073/1999 of the European Parliament and of the Council of
25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF) (2).

(1) OJ L 292, 15.11.1996, p. 2.
(2) OJ L 136, 31.5.1999, p. 1.

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 15 July 2004 the Commission submitted to the European Parliament and to the Council a
proposal for a decision, based on Articles 150(4) and 157(3) of the EC Treaty, establishing a
programme of support to the audiovisual sector (MEDIA 2007).

2. The Committee of the Regions delivered its opinion on 23 February 2005.

3. The European Parliament delivered its opinion at first reading on 25 October 2005.

4. On 24 July 2006, the Council adopted its common position in accordance with Article 251 (2) of

the EC Treaty.

II. OBJECTIVE

The proposal combines in a single programme the current Community support measures in favour of
the European audiovisual industry, i.e. the MEDIA Plus and MEDIA Training programmes, that run
until 31 December 2006. The new measures have as global objectives to:

— strengthen the competitiveness of the European audiovisual sector in the framework of an open

and competitive market;

— increase the circulation of European audiovisual works inside and outside the European Union; and

— preserve and enhance European cultural diversity and its cinematographic and audiovisual heritage,

guarantee its accessibility for European citizens and promote intercultural dialogue.

In order to achieve these objectives, the programme will support the acquisition and development of
skills, development, distribution and promotion of European audiovisual works, and pilot projects.

III. ANALYSIS OF THE COMMON POSITION

1. General comments

The Council's common position remains fully in line with the Commission's original proposal. On
the whole, the Council, the European Parliament and the Commission have convergent approaches
on the programme.

The budget of EUR 671 million (at 2004 prices, and subject to adjustment to take account of infla-
tion) was agreed by the three institutions in the context of the interinstitutional agreement on the
Financial framework for 2007-2013.

The Council introduced in the text two provisions taken over from the current MEDIA Programmes:
a) an indicative breakdown of resources (in Chapter II of the Annex); b) a management committee
procedure for projects with a total Community contribution over EUR 200 000 per beneficiary and
per year in the case of training and promotion, EUR 200 000 in the case of development and
EUR 300 000 in the case of distribution (in Article 10). Those thresholds are identical to those in
the existing MEDIA programmes.

2. European Parliament amendments

The Council has sought in its common position to take account of the European Parliament's
concerns and priorities and was able to accept most of Parliament's amendments.

2.1. Amendments accepted in full, in part or in principle

Amendments 1, 2, 4, 5, 6, 7, 8, 10, 11, 12, 13, 16, 17, 19, 20, 22, 23, 25, 29, 30, 32, 35,
36, 37, 44, 45, 46, 50, 53, 58, 59, 60, 61, 62, 63, 66, 67, 68, 72, 75, 76 and 77 have been
included in full, albeit in places with slight rewording or minor linguistic changes.

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Official Journal of the European Union

C 251E/19

A number of amendments were accepted in part: Amendment 9 (except the last sentence), 15
(with the exception of the reference to the Constitution for procedural reasons), 18 (except the
last sentence), 78 (with the exception of media pluralism and freedom of expression already
covered by recital 3), 38 and 47 (both except the last sentence), 48 and 49 (except the first
part which falls outside the scope of the programme), 54 (without reference to specific cate-
gories of Member States), 56 (without a name for the prize) and 69 (with the reference to
European Cinema Days rather than European film festivals).

2.2. Amendments not incorporated

In the light of the Interinstitutional Agreement on the Financial Framework 2007-2013, the
Council rejected amendments 86, 89 and 27 which concern the overall budget.

One of the features of the programme is positive discrimination in favour of the Member
States having adhered after 30 April 2004. Amendments aiming at extending these measures
to Member States with low production capacity and restricted linguistic areas were rejected
(amendments 28, 55 and 57).

The Council could not accept amendments 64 and 65 aiming at reducing the number of
broadcasters in different Member States from 3 to 2 for productions of independent producers,
since bilateral cooperation would not offer Community added value.

The Council considered that amendment 31 on subtitling introduced a prioritisation of the
means to encourage the circulation of audiovisual works, whereas the aim of the programme
was to encourage diffusion by whatever means, including dubbing.

Amendment 39 was rejected on the grounds that a proliferation of Media Desks would not be
advisable.

Specific mention of participation to the programme of the countries covered by the neighbour-
hood policy (amendment 34) was not retained.

A number of amendments were rejected on the grounds that their content was covered by the
recitals (amendments 40, 41, 42, 43) or taken up elsewhere in the text (26, 33 and 70), or
because it was deemed that they fell outside of the scope of the programme (amendments 3,
14, 52, 71, 73 and 74). Finally, amendment 51 was considered too specific.

IV. CONCLUSION

The Council considers that its common position represents a balanced text, providing a good basis for
the timely launching of this instrument in support of the European film industry. It also considers that
it has taken account of the objectives pursued by the European Parliament in its amendments to the
Commission's proposal and looks forward to an agreement with the European Parliament in the near
future with a view to the adoption of the Decision.