Brussels (Brussels Morning) – The European Commission approved a €500 million Maltese scheme to support cultural audiovisual production, covering up to 50% of costs, aimed at boosting Malta’s film industry until October 2028.
The European Commission has authorised, under EU State aid regulations, a €500 million Maltese scheme to fund the production of audiovisual works with cultural content.
How Will Malta’s Audiovisual Sector Benefit from New Funding?
The purpose of the scheme is to reinforce the cultural and audiovisual sector, notably to assist in the development of the film production industry in Malta. The scheme, which will operate until 29 October 2028, will be open to commodities involved in audiovisual production in Malta. Under the scheme, the support will take the form of direct assistance and will cover up to 50% of the production costs spent in Malta.
The EU Commission estimated the scheme under EU State aid regulations, in certain, Article 107(3)(d) of the Treaty on the Functioning of the European Union and Cinema Communication, which outlines the compatibility requirements for support in favour of cinematographic and audiovisual works.
How Does the EU Scheme Support Cultural Content in Malta?
The EU Commission figured that the scheme is necessary and relevant to support the cultural and audiovisual sector. In particular, the Commission found that the project complies with the Cinema Communication, notably as it sustains cultural works only, respects the limitations regarding the aid intensity and the territorialisation of costs, and is not directed towards specific production costs.
Furthermore, the Commission found that the scheme is proportionate and will have little impact on competition and trade between Member States. On this basis, the Commission authorised the Maltese scheme under EU State aid rules.
How Has Malta Transformed Since It Joined the EU?
Since it entered the EU, Malta has transformed in many ways. Some of these modifications were a direct result of EU membership while others were merely the result of globalisation. EU membership has continued Malta’s geopolitical relevance as a small island state in the Mediterranean and it has led to real political, economic and social developments. Years of growing interconnectedness resulted in reduced insularity and increased international participation.
Malta’s civil society is more interconnected with its European peers and it is covered by an additional set of supranational laws. Its economy has been altered into one that is primarily based on services, while the manufacturing sector has moved towards more high-value products. There have been significant investments in infrastructure and the environment. Heritage and agriculture have been aided by additional funds.
On the financial facade, Malta no longer has to deal with the dangers of managing a small currency because it assumed the Euro. Consequently, its deficit was brought down to more effortless levels. This has helped Malta weather the global financial storm that ensued after the recent financial crises without harsh repercussions on Malta’s economy.
