The ongoing proposal for a massive overhaul of Germany’s national film funding infrastructure has been the subject of intense debate at this year’s Munich International Film Festival (MIFF).
An important board for reform is the revision of the German Film Act (FFG), which came into effect in early 2025. However, the German film community is awaiting the introduction of a tax incentive model to attract international film and television production.
Bavarian Prime Minister Marcus Sedar used his speech at the opening night of the festival to try to push reforms higher on the central government’s agenda. “We’ve seen things aren’t really moving forward,” he said. “We don’t want film productions to drift away. More films are produced in France, Spain and Hungary than they are here.”
Söder said that a change in the tax framework for filmmaking “means that more will be produced (in Germany), and we will once again become a powerful film hub across Europe.”
The first Bayern Film Summit took place on the eve of the festival, bringing together 60 key players from the production, broadcast and streaming sectors. Following last fall’s election in Germany, Wolfram Weimer, who took over Claudia Ross as State Minister Claudia Ross (BKM), also attended and signaled his intention to advance reforms.
At a press conference after the film summit, he proposed that two outstanding pillars of the fundraising reform package “may become a reality within the next year.”
However, Frank Karstenholz, head of film industry and international affairs under Weimer, stressed in a panel hosted by Media Law Practice Fisher that it was a “illusion” to expect tax incentives to take effect on January 1, 2026.
Weimer also announced that he would invite US streamers and VOD services to have “intensive consultations” with him in Berlin before his summer break on the introduction of investment obligations.
Two major German producer associations, Prodexion Sariantz and German program producers, have responded positively to the official statements of Seder and Weimer, but the wider German film community is not convinced that their politicians understand the seriousness of the situation.
“The main issue with the agreement on a tax incentive model is that there still appears to be no agreement between the financial ministries of lenders that have a film industry in their region and those who do not.”
His joint venture with Joe Neurauter, Supernix brought such an international work Crow and Return to Silent Hill Filmed at a new Penzing studio outside of Munich, and is currently preparing to shoot the fall of Paul Greengrass farmer rebellion drama anger At a Bavarian location.
“What’s important for international productions that want to shoot in Germany is that the planned incentives are open systems possible, among other things, for the eligibility of casting and crew foreign costs,” Kraser said.
The charm of Austria
The need for competitive national production incentives has become increasingly apparent as increased local production numbers outside of Germany have been seduced for all or part of the filming.
For example, nine of the 30 international co-productions supported in 2024 by a 30% I+ production incentive in neighbouring Austria were numerous German works. In total, they received about half of the total 32 million euros allocated to OFI+. (However, the Austrian government is considering making a controversial change to the 2026 OFI+ budget, reducing it from 22 million euros to 15.5 million euros.)
However, as it stands, OFI+ comes with an ASO with a 5% green shooting uplift is compared favorably with the 25% cash rebate offered by Germany’s own DFFF or GMPF production incentive.
German productions that benefited from Austrian incentives included Samfilm’s A girl named Willow (3.5 million euros), Wiedemann & Berg Film’s Bibi Blocksberg (3 million euros) and Constantine Film girl World premiere in Munich this week (2.5 million euros)
“What I get in the way is that we are still in detail without progressing,” said Hendrick Ciello, director of law and HR at the Studio Babelberg at Field Fisher Panel.
He pointed to the misbehavior currently reported among production service providers, due to part of the filming moving outside of Germany. Among the companies that must declare bankruptcy are Berlin-based Cinegrell Postactory, camera rental company Camelot Broadcast Services, and post-audio company Wavefront Studios.
With summer vacation approaching, the next opportunity aimed at developing Minister Weimer’s efforts to complete the fundraising reform package by next year will come to Industry Day with the next edition of FilmFest Hamburg at the end of September.
Miff will continue until July 6th.
(TagstoTranslate)Austria (T)Festivals (T)Funding News (T)Germany (T)Location (T)Munich Film Festival
