Article 1 
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 from 1 January 2007 to 31 December 2013. 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 diversified 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 intercultural dialogue; (b) increase the circulation and viewership of European audiovisual 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 European market favourable to employment, including by promoting links between audiovisual professionals. 3. In order to achieve these objectives, the programme shall support: (a) upstream of audiovisual production: the acquisition and improvement of skills in the audiovisual field and the development of European audiovisual works; (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. 4. The priorities in the areas for intervention set out in paragraph 3 shall be as follows: (a) fostering creativity in the audiovisual sector and knowledge and dissemination of Europe's cinematographic and audiovisual 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 countries and countries or regions with low audiovisual production capacity and/or a restricted geographic and linguistic area; (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 for the period set out in Article 1(1) is fixed at EUR 754 950 000. 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 framework.
Article 3 
Acquisition and improvement of skills in the audiovisual field In the field of acquisition and improvement of skills, the objectives of the programme shall be to: 1. strengthen the skills of European audiovisual professionals in the fields of development, production, distribution/dissemination 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 potential 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 production, post-production, distribution, marketing and 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; (a) scriptwriting techniques with the aim of increasing the quality of European audiovisual works and their potential 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 production, post-production, distribution, marketing and 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; (c) inclusion upstream of digital technologies for production, post-production, distribution, marketing and 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; 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; (a) support for the networking and mobility of European training professionals, in particular: — European film schools, — training institutes, — partners in the professional sector; — 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 1. In the development sector, the objectives of the programme shall be to: (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 and projects for European productions, in particular the financing of co-productions. 2. The Commission shall take steps to ensure that the activities supported in the field of improving professional skills and those set out in paragraph 1 complement each other. 3. The measures set out in paragraphs 1 and 2 shall be implemented in accordance with the provisions in the Annex.
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 distributors to invest in the co-production, acquisition and promotion of non-national European films and to set up coordinated 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 broadcasters on the one hand and independent producers and distributors 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 in points (a) to (e) shall be implemented 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 film and audiovisual programme promotion organisations; (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.
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 communication technologies. 2. For the purposes of implementing paragraph 1, the 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.
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-accession 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 arrangements 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 paragraph 1, assuming that supplementary appropriations are received in compliance with the conditions to be agreed upon between the parties concerned. 3. Opening up of the programme to European third countries 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 Administrative Action in Member States concerning the pursuit of television broadcasting activities ( 7 ). This provision does not apply to actions pursuant to 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 incorporating 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 conditions provided for in this paragraph.
Article 9 
Financial provisions 1. Legal and natural persons may be the beneficiaries of the programme. 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. 2. The Commission may decide, depending on the beneficiaries 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. 3. Depending on the type of action, financial aid may take the form of grants or scholarships or any other instrument authorised by Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002, on the Financial Regulation applicable to the general budget of the European Communities ( 8 ). 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 laying down detailed rules for the implementation of Regulation (EC, Euratom) No 1605/2002 ( 9 ) may be authorised. 4. The Commission shall adhere to the proportionality principle in respect of administrative and financial requirements, such as eligibility criteria and financial capacity, with regard to the size of the grant awarded. 5. Financial aid awarded under the terms of the programme may not exceed 50 % of the final costs 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. 6. In keeping with the specific nature of the activities cofunded and in accordance with Article 112(1) of Regulation (EC, Euratom) No 1605/2002, the Commission may deem costs directly linked with implementing the activity supported to be eligible, even if they were partially incurred by the beneficiary before the selection procedure. 7. In accordance with Article 113(1) of Regulation (EC, 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. 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 10 
Implementation of this Decision 1. The Commission shall be responsible for implementing 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 programme resources, including the breakdown between measures in the fields of improving professional skills, 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 distribution; (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.
Article 12 
MEDIA Desks 1. The European network of MEDIA Desks shall act as an implementing body for disseminating information on the programme at national level, 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 in point 2.2 in Chapter II of the Annex. 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 environment 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 Commission 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 areas of education, training, research and the information 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 implementation of the programme. 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 arrangements 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. 2. The Commission shall present to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: (a) an interim evaluation report on the results and the qualitative and quantitative aspects of implementing the programme no later than three years after the start of the programme; (b) a communication on the continuation of the programme no later than four years after the start of the programme; (c) a detailed expost evaluation report by 31 December 2015 covering the implementation and results of the programme, on completion of its implementation. The Commission shall publish and disseminate via the MEDIA Desks any relevant statistics and analyses. 3. Reports produced pursuant to paragraph 2(a) and (c) shall identify the added value of the programme.
Article 15 
Transitional provisions Activities undertaken before 31 December 2006 on the basis of Council Decision 2000/821/EC ( 10 ) and Decision No 163/2001/EC of the European Parliament and of the Council ( 11 ) shall continue to be managed until they are terminated in compliance 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.
Article 16 
Information on the European audiovisual sector The European Union shall contribute to increased transparency and dissemination of information on the European audiovisual sector.
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 financial and legal statistics and information, especially on the Member States which have acceded to the European Union after 30 April 2004, thereby enhancing the European audiovisual sector's ability to compete and develop; (b) by enabling the programme to be monitored more effectively and making it easier to evaluate.
Article 19 
Monitoring and evaluation Monitoring and evaluation of the European Union's participation in the Observatory shall be carried out within the framework of the monitoring and evaluation of the programme in accordance with Article 14.
Article 20 
Entry into force This Decision shall enter into force on the day following its publication in the Official Journal of the European Union. It shall apply from 1 January 2007.