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State aid for audiovisual works

The Croatian Competition Agency authorised the proposed state aid contained in the Ordinance on the promotion of investment in the production of audiovisual works in the Republic of Croatia for feature films and documentaries, animated and TV films and series.

The total amount of aid which will be granted under the aid scheme in question by the Ministry of Culture i.e. Croatian Audiovisual Centre in the form of direct grants is HRK 40 million for the period from 1 January 2012 to 31 December 2013. Aid intensity is limited to 20 per cent of the eligible costs of the project or 4 million Kuna. For the same eligible costs the aid beneficiary may be granted other categories of aid, including de minimis aid, whereby the maximum intensity of aid may not exceed 50 per cent, in the case of low budget and difficult films this is limited to 80 per cent of the eligible costs.

Given the fact that the development, production, promotion, distribution and showing of audiovisual works is under the Croatian Act on Audiovisual Activities defined to be of a national interest, which complies with the similar national interests of the EU member states, a well defined state aid regime should facilitate the promotion and development of film and TV production in the territory of the Republic of Croatia.

State aid under the aid scheme concerned cannot be granted for works of promotional nature, projects promoting violence and/or racism and/or with a pornographic content, projects that may be contrary to the interests of public health, respect for human rights, people’s security, freedom of expression etc., for soap operas and sitcoms.