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State Aid

PR(06)57:Approval of a prolongation of support measures in favour of film production in Iceland

13.12.2006

The EFTA Surveillance Authority decided today not to raise objections to a prolongation of the Icelandic act on temporary reimbursements of film production costs. The current scheme was approved by the Authority in 2000[1], and expires on 31 December 2006. The objective of the scheme is to enhance Icelandic culture and to promote the history and nature of Iceland.

The notified amendment prolongs the exisiting scheme until 31 December 2011. It also introduces certain amendments to the existing scheme, including an increase of the reimbursed proportion of the total production costs from 12 to 14 per cent.  The Authority has assessed the scheme and come to the conclusion that no doubts are raised as to its compatibility with the functioning of the EEA Agreement. It has therefore been decided to approve the prolongation.

For further information, please contact:

Ms. Hanne Zimmer
Officer, Competition and State Aid Directorate
Tel. (+32)(0)2 286 18 87


13 December 2006



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