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New study looks at effectiveness of tax incentives

A new study commissioned by the European Audiovisual Observatory is to look at the effectiveness of various tax incentive models for the film and audiovisual industry in Europe. The first consultations are currently being carried out at the Berlinale, Berlin’s international film festival.

The study will assess the economic impact created by a select number of European schemes, as well as assessing the advantages and disadvantages of different types of incentive structures.

The organisation has commissioned creative industries strategy consultancy Olsberg SPI to conduct the economic impact analysis.

One important aspect will be evaluating how far the incentives attract foreign investment, both from Europe and the rest of the world. Other facets that will be looked at are the impact on areas such as state budget, effects on the national audiovisual industry and employment. It will also look at how schemes tie in to wider economic and film policies.

The study is a response to significant interest in the issue of production incentives from a range of parties and will be published late 2014.

"With this assessment the European Audiovisual Observatory is aiming to deepen the understanding across Europe of the use of incentives and the impact they can have on both inward investment and indigenous production," said Observatory executive director Susanne Nikoltchev.

Olsberg SPI chairman Jonathan Olsberg said his team looked forward to consulting closely with the industry and policymakers for this evaluation, and invited those interested in providing input to contact the organisation.

The first consultations are currently being carried out at the Berlinale, the annual international film festival in Germany.

The project has been made possible by extra funding provided by the Finnish Ministry of Education and Culture – one of the members of the Observatory’s executive council.

This organisation represents Finland in the Observatory's Executive Council which brings together its 40 member countries plus the European Commission.

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