EU greenlights Spanish movie-making state aid

(BRUSSELS) - European regulators on Wednesday gave their blessing to more than half a billion euros in Spanish state aid to support film production and distribution.

"The European Commission has approved under European Union state aid rules a 576-million-euro (810 million dollars) Spanish film support scheme until 31 December 2015," said a statement from Brussels.

EU rules allow "aid to further cultural objectives under certain conditions," it underlined.

"I commend the Spanish authorities for targeting the aid to increase the cultural diversity of films available to Spanish audiences," said outgoing Competition Commissioner Neelie Kroes.

"This scheme should improve the visibility and popularity of Spanish independent films, not only in Spain but worldwide, without unduly distorting competition."

According to Brussels data, in 2008, US films accounted for 71.5 percent of the Spanish market.

The commission dismissed concerns raised in submissions that the aid was not available to films made for less than 600,000 euros and that preference was given to female filmmakers.

"Member states are entitled to limit their film support to certain films and audiovisual works provided that the aid is directed towards a cultural product, which the commission has verified in this case," it concluded.

Science-fiction epic "Avatar," which this week secured a new global box office record with takings of 1.85 billion dollars, itself cost 500 million dollars to make, putting the scale of the Spanish aid, running for five more years, into context.