If Trump’s tariffs have been good for anything, it’s been inspiring European businesses. The chaos around them and the Trump administration more generally present an opportunity for businesses to capitalise on this weakness, and improve their own standing in a number of industries.
One of these is the film industry. While the Chinese box office is an obvious competitor given its existing strength (and limitations on foreign films), Europe is confident about improving its own position, and has plenty to back it up—with the industry already flourishing in a number of nations thanks to financing, education, and some unique cultural factors.
Cultural cachet
The strength of the European film industry isn’t just historical or cultural. European film productions have increased by over 50% in the past 10 years, and benefit from a strong European festival circuit. Cannes, Venice and Berlin are among the world’s premier film festivals, and confer benefits for cinema outside of the Hollywood mainstream, bringing global attention to European films.
Many participants have benefitted in some way from the Creative Europe Media (Mesures pour Encourager le Développement de l’Industrie Audiovisuelle) programme, which is currently working its way through a six-year, €1.4bn budget. The programme funds everything from training talented filmmakers, editors, videographers and other support staff to marketing and distribution. All of this is with the ultimate goal not just of making money for European nations, but strengthening their cultural identities.
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As a pan-European initiative, this isn’t about nationalism so much as a shield against the homogenisation of European culture—in large part because of the pervasive influence of massive Hollywood blockbusters. With most of Europe currently presenting a united front against the United States, the soft power of movies and TV provide a genuine opportunity: to reinforce European values, boost European businesses, and capitalise on a period of potential weakness, both in Hollywood and the American film industry as a whole.
French Academy
Nowhere is this more evident or more culturally ingrained than France. Cannes is just one arm of a local industry that creates and supports great filmmakers through national and European funding. The National Centre of Cinema (CNC) is at the heart of this, providing financial support to an array of companies and creatives, including in movies, TV, and video game production. The CNC levies taxes on distributors such as Netflix, and pours this back into funding audiovisual projects, with a particular focus on emerging filmmakers and screenwriters.
This is part of an ecosystem that doesn’t just support the creation of French content, but brings it to air. French broadcasters such as Canal+, Arte and France Télévisions are all obligated to invest a certain proportion of their revenue into French content, and have a strong focus on airing French content. This benefits the broadcasters, too, as French copyright laws help to maintain the value of content and ensure that rebroadcasts and international rights distribution help bring money back to them.
French film companies also benefit from a series of generous tax credits. The cinema tax credit can cover up to 30% of expenses incurred from French productions, while the Tax Rebate for International Productions (TRIP) can also benefit (as the name suggests) international projects. Films where some production takes place in France and which have some French or European cultural value can claim up to 40% of their French expenses back up to €30 million per project, depending on the level and type of investment.
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This is part of a two-pronged approach from the French film industry. Homegrown cinema is extensively supported through the above measures, as well as regional film funds such as those in Île-de-France or Provence-Alpes-Côte d’Azur. However, there’s also a desire to support international co-productions that involve France, and particularly which build partnerships across Europe. The Eurimages programme from the Council of Europe explicitly supports European co-productions, while a number of bilateral co-production agreements let French producers collaborate with other countries while still maintaining access to national subsidies.
European excellence
France may be the spiritual home of cinema—ask the Lumière brothers—but it’s far from the only European cinema hotbed. The European Union is very much of the belief that a rising tide lifts all boats, and provides support for film production across the continent, adding its support to that of individual nations. Belgium, Germany, Italy and Spain all boast strong local filmmaking cultures, not to mention the scene in the UK, excluded though it may be from EU funding.
Belgium for instance offers the Tax Shelter incentive, which allows companies to invest in audiovisual works in exchange for an up to 48% tax reduction for investors, as well as offering support via regional funds such as Screen Flanders and Screen Brussels. Germany’s Deutscher Filmförderfonds (DFFF) meanwhile subsidies between 20 and 25% of eligible expenses incurred in German film production, and offers funding through Länder companies such as FFF Bayern and Medienboard Berlin-Brandenburg.
In Italy meanwhile, Italian films and co-productions which meet eligibility criteria can benefit from an up to 40% tax credit through the Italian Ministry of Culture (MIBAC), as well as regional funding from organisations such as the Roma Lazio Film Commission. Spain also offers a competitive tax credit of between 30 and 50% depending on location, with the Canary Islands providing the top rate. The Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) also offers public funding for production, distribution, festival organisation and participation, and public exhibitions of media, among other aspects of filmmaking.
None of this is to mention the UK, which has become almost an arm of the Hollywood movie industry thanks to its production studios and talent. Studios such as Pinewood and Elstree already attract significant attention from international productions, with a huge industry built up around them. A 25.5% tax break and a pool of local talent and expertise make the UK a common film destination for CG epics, while the country’s mix of modern cityscapes, picturesque scenery, medieval architecture and quaint towns and villages make it suitable for both modern and fantasy filmmaking. Northern Ireland for instance is famous for having hosted much of the production of Game of Thrones, while the UK’s plethora of castles and stately homes have hosted productions like Harry Potter, Downton Abbey, and Saltburn.
The future of European films
So what is the realistic chance of European cinema making a name for itself, and posing a genuine challenge to Hollywood? One could argue in the case of the UK that the battle has long since started. A significant number of British actors have taken leading roles in Hollywood, demonstrating the strength of the UK industry and the theatres that feed it. The production capacity and talent are already in place to make more British films and TV shows, and organisations such as the BBC have increasingly sought international funding to back their domestic productions.
International broadcasters, distributors and audiences are also showing a growing interest in foreign films and TV shows. Netflix has been dominated in recent years by foreign productions, from Squid Games to Dark to a wealth of Japanese anime. Even shows like Emily in Paris demonstrate the investment of broadcasters in international content, even if it isn’t the most accurate representation of life in France. There’s a sense that many people are increasingly comfortable with subtitled content, something that bodes well for more authentic European cinema.
Perhaps the biggest obstacle is the health of cinemas. Cinema trips can be seen as an indulgence at a time of tightening budgets, and box office numbers reflect this. Arthouse cinema in particular isn’t something that brings droves to cinemas just yet, while streaming services that focus on this—such as Mubi or Curzon Home Cinema—face the problem of heavy competition in the streaming market, with dozens of services now available. The problem is not just funding the production of European films and TV shows, but advertising them to an audience that may be less willing to part with their cash than usual.
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This isn’t a problem that is isolated to Europe, however. America’s cinemas are also struggling, and American filmmaking may be more heavily impacted by Trump’s latest tariffs than comparatively smaller European movies, given how many Hollywood productions take place abroad. Honest portrayals of European life could even find a greater home in countries such as China, where the banning of American productions could leave room for growth—and where Chinese audiences have already proven to be interested in bucolic European life.
The chaos of recent actions by the U.S. president haven’t left many businesses in a good mood, but there could be a silver lining for the European film industry. As much as the latest tariffs could hurt countries such as the UK in the short term, where Hollywood partnerships are well established, America’s weakness could prove to be Europe’s strength. A well-established and well-funded film and TV industry is poised to take advantage of this temporary lapse, and propel its own productions into the global limelight.
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