Czech Audiovisual Fund: 400 million crown subsidy cut is illegal

The board of the Czech Audiovisual Fund has said that the planned cut in state subsidies is contrary to the law. The head of the ministry has demanded that funding for support be reduced by about 400 million crowns, roughly half. In the board’s view, lowering subsidies below the statutory minimum violates the law and makes no economic sense.

“Any change or reduction of this amount would bring no savings to the state budget, because the minimum state budget contribution to support the audiovisual sector is set by the current rules for 2027 at 228 million crowns,” the board’s resolution states.

The savings demanded by the ministry exceed the minimum state contribution by 172 million crowns. They would also seriously hit the fund’s own revenue from fees paid by cinema operators, television channels and streaming platforms.

The board points out that the support plans were approved in September, and specific calls for applications have been announced since October. The proposed funding restriction would undermine the stability and predictability of the sector, wipe out long-term project preparation and breach the rules of the grant programs.

Fund representatives add that, following its transformation, the fund is also responsible for the development of the gaming industry and animation. “Any changes to support must be properly justified and take into account the obligation to ensure the development of each supported category,” they stress.

Around Prague, based on reporting by novinky.cz