Berlin and Brandenburg intend to make 16 million euros available for the film default fund planned for the end of summer. The fund is a joint initiative of the federal and state governments. It intervenes when production losses occur in individual productions due to corona infections.
Default fund in the amount of 50 million Euro
Already in mid-July, the governing mayor of Berlin, Michael Müller, had asked the prime ministers of important film countries for their cooperation in order to find a sustainable solution to this existential issue for the film industry. Berlin and Brandenburg are now planning to contribute 16 million euros to the 50 million euro default fund. The Producers’ Alliance, which has been campaigning since the beginning of May for such a default fund, as has long been introduced in France and Austria, welcomes the decision as an extremely important step for the film and television industry.
The default fund is the central instrument to get the engine of the film and television industry running again.
Chairman of the producer alliance
Without the fund, film and series productions are not protected against possible corona-related default risks, which means that many production companies cannot take the risk of having to stop shooting again.
16 million euros from Berlin and Brandenburg
Medienboard Managing Director Kirsten Niehuus: “16 million euros from the capital region for the film contingency fund is an important signal that the film and TV industry will survive the pandemic. In solidarity with BKM and other federal states, the fund is an indispensable measure to ensure that filming can be resumed, in order to adequately cover the risk of shooting, as there is currently no adequate insurance for corona-related damage. The administration of federal and state aid from a single source by the FFA would be particularly helpful”.
The default funds is intended to give the industry the security it needs to restart shooting.
Head of the Berlin Senate Chancellery
Brandenburg’s Minister of Economics Jörg Steinbach explains: “This fund will help to secure jobs in the capital region. With this fund, the federal states are demonstrating their ability to act in an important area of economic and cultural policy. (…) It is intended to help the film and television industry in Germany to return to the production level it was at before the Corona crisis very soon”.
Joint federal-state initiative
Minister of State for Culture Monika Grütters announced on July 3 that the German government will provide 50 million euros to cover pandemic-related downtime costs as part of the New Start aid and investment package. However, this support will only be used for cinema film productions and high-quality serial productions. Who determines on what basis which series production is high-quality and which is not is an interesting question.