Public Film Funding Under a Federalist Paradigm: A Synoptic Analysis of State Aid for Film in Germany

Abstract

The German system of State aid for film is unique in Europe. It combines high levels of central State funding with a decentralized governance structure through regional funding bodies, best depicted as a “federalist governance paradigm.” In this chapter, a synoptic overview of Germany’s public film supply support schemes is provided and critically discussed. In Germany, public subsidies for film are both selective ex-ante grants to filmmakers and ex-post grants handed out automatically for new film projects once a film has become successful in cinemas or festivals. Subsidies are administered both on federal and regional levels and aim at correcting market failures and safeguarding the surplus value of film as both economic good and cultural artifact. However, the subsidy schemes applied hardly realize the policy goals. Results show a basic instruments-effects bias in various parts of the schemes. The underlying deficits need to be addressed should the schemes become more effective.