Reform in film production financing

Film production may experience a revival in the coming period. A bill aimed at modernizing funding for the development and production of films, by replacing direct repayable credit with subsidies as a form of support, has been publicly discussed by the Ministry of Culture. The announcement was made by the Minister of Culture, Raluca Turcan, who stated that the public discussion of the bill to amend and supplement Government Ordinance 39/2005 on cinematography represents "an ambitious reform" that seeks to align the field with current international standards: "I believe it is crucial to focus our efforts on promoting Romanian cinema and high-quality artistic productions that reflect cultural values, both national and European. The new framework for artistic support aims to encourage the development of young talents in the film industry and strengthen our presence in the international film market."

According to the explanatory statement, the proposed changes in the mentioned bill primarily aim to align national legislation with European, bilateral, and international treaties. Secondly, it is necessary to adapt the financing system to the current requirements of the film industry, reflecting changes in the industry's needs and trends, as well as streamlining the supported actions and activities from the Film Fund and reducing administrative processes. The document further states: "The most significant change involves modernizing funding for film development and production by phasing out direct repayable credit funding and introducing subsidies as a form of support for film development and production. This change aligns with European community practices in the field and will contribute to the sustainable growth of our film industry, eliminating the disparities between our country and those at the EU level. At present, most state funds for cinema in Europe are granted in the form of non-repayable support, which creates a commercial advantage for production houses in other EU member states." Non-repayable support provides greater stability for film producers and can stimulate the development of film projects. The fact that most state funds in the EU are provided as non-repayable support can create competitive disparities. Aligning with this practice aims to eliminate these disparities and provide a more equitable environment for film producers in the respective country, the source notes.

Additionally, the project proposes streamlining the funding process by making the script competition phase transparent and implementing two continuous funding sessions throughout the year. Fixed deadlines and durations for submitting competition files through a digital platform are established to bring fluidity and predictability to the funding process.

The project also suggests clarifying the responsibilities of selection committee members, the duration of their tenure, and related incompatibilities, which will help prevent conflicts of interest and ensure a transparent process in both the selection and the quality of the committees that will determine projects eligible for selective competition. Another proposed measure pertains to differentiating funding sections through project competitions, including introducing a section for minority co-productions that facilitate meeting reciprocity obligations with closely collaborating countries and clearly defining the types of projects eligible for funding in each competition section.