FINANCIAL INSTRUMENTS FOR REGULATING THE FILM INDUSTRY IN THE EUROPEAN UNION

Abstract

The article is devoted to the analysis of financial mechanisms for regulating the film industry in the European Union against the backdrop of changes in cultural and economic policy. Emphasis is placed on the decisive role of the film industry as a key element of the creative economy, which significantly affects gross domestic product, employment levels, and the revitalization of international cultural exchanges. The main forms of financial support for film production are considered, including budget financing, subsidies, tax incentives, grant programs, and public-private partnerships. Special attention is given to the comparative analysis of national support models implemented by individual EU member states, highlighting both common trends and distinctive features in the allocation of public funds. The study also examines the impact of digital transformation and streaming platforms on traditional financing schemes and explores emerging challenges related to market competition, intellectual property protection, and audience engagement. Furthermore, the role of international co-productions is emphasized as an effective tool for expanding distribution networks and strengthening cross-border cultural cooperation. The findings of the study may serve as a practical basis for developing adaptive policy instruments aimed at enhancing the sustainability and competitiveness of the film industry in the context of global economic uncertainty. In addition, the article identifies key risks associated with insufficient diversification of funding sources and uneven access to financial resources among independent producers. Particular emphasis is placed on the importance of transparent governance, accountability mechanisms, and evidence-based policymaking in ensuring the efficient use of public funds. The research also outlines potential directions for harmonizing national regulatory frameworks with European standards in order to stimulate innovation, foster creative entrepreneurship, and promote the long-term resilience of the audiovisual sector. Moreover, the integration of sustainability principles into film financing policies is considered a strategic priority for supporting environmentally responsible and socially inclusive production practices.