As Germany’s politicians work towards forming a new government, the challenges faced by the country’s film industry may not be a top priority. The conservative Christian Democrats (CDU), led by Chancellor designate Friedrich Merz, are currently focused on addressing Berlin’s public finances and finalizing a coalition deal with the Social Democrats (SPD). This lack of attention to the film industry was evident during a recent parliamentary debate where other issues dominated the discussion.
Recent data has shown a decline in the German film industry, with theater admissions falling and domestic titles struggling to capture market share. Television revenue is also decreasing, leading to financial struggles for many production companies. Despite this, the outgoing government did approve a new version of the country’s film funding law to support local productions.
One important issue for the industry is the need for a new tax incentive to attract more international productions to Germany. Compared to other European countries offering competitive incentives, Germany is falling short. The lack of a tax incentive could result in productions choosing to film in other locations, causing long-term damage to the German film industry.
There is also a proposed law that would require streaming platforms to invest in local productions, potentially benefiting German producers. However, this law is on hold until a new government is formed. The timeline for government formation is uncertain as negotiations continue between the CDU and SPD to form a coalition government.
Despite the challenges facing the industry, there is hope that proposed tax breaks and government spending could benefit German film and TV producers. The importance of a competitive tax incentive model for maintaining Germany’s international competitiveness as a filming location is emphasized by industry experts. It is crucial for the new government to continue reforms and support the industry to prevent any setbacks in progress.
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