Brussels, 14 June 2024
The European Commission has approved, under EU State aid rules, a €500 million Maltese scheme to support the production of audiovisual works with cultural content.
The purpose of the scheme is to support the cultural and audiovisual sector, notably to contribute to the development of the film production industry in Malta. The scheme, which will run until 29 October 2028, will be open to entities involved in audiovisual production in Malta. Under the scheme, the aid will take the form of direct grants and will cover up to 50% of the production costs spent in Malta.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(d) of the Treaty on the Functioning of the European Union and the Cinema Communication, which sets out the compatibility requirements for aid in favour of cinematographic and audiovisual works.
The Commission found that the scheme is necessary and appropriate to support the cultural and audiovisual sector. In particular, the Commission found that the scheme complies with the Cinema Communication, notably as it supports cultural works only, respects the limits regarding the aid intensity and the territorialisation of costs, and is not channelled towards specific production costs. Furthermore, the Commission concluded that the scheme is proportionate and will have a limited impact on competition and trade between Member States. On this basis, the Commission approved the Maltese scheme under EU State aid rules.
The non-confidential version of today’s decision will be made available under the case number SA.109768 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.