THE EUROPEAN Parliament will this morning support a proposal to create a £160 million fund to encourage private sector investment in the European television and film industries.
The European Guarantee Fund would guarantee loans given by financial institutions to film and television producers in EU member states. The proposal was put forward initially by the European Commission, and arises from a perception that banks are reluctant to finance much film and TV production, as they regard it as too risky.
The money would be provided over five years from the EU budget and the private sector. The proposal is among a series being considered by the EU to support film and television production.
Such support is considered necessary by EU leaders not just to create jobs, but to offset US "cultural imperialism" - the growing, dominance of US made film and television programmes in Europe.
Under EU decision makings procedures, the proposal must now be considered by the EU Council of Ministers. Some finance ministers have questioned the need for such a fund and expressed doubts as to whether it would create extra jobs.
The Minister for Arts and Culture and the Gaeltacht, Mr Higgins, has been an enthusiastic supporter of the proposal.
During the debate on the issue last night, a British Labour MEP, Ms Carol Tongue, praised Mr Higgins's "determination to put culture at the heart of Europe".
Mr Higgins, she said, had remarked that "if the European Union is going to be purely about economics and competition policy, it will not win the hearts and minds of the European citizen".
Ms Mary Banotti, the Fine Gael Dublin MEP, welcomed the proposal, but said that countries, whose banking sectors have not traditionally funded film production should be particularly targeted. "Good progress on this whole" area is being made under the Irish Presidency of the EU. We need to continue cautiously, but progress is surely being made in realising, what could be a very useful tool for the European film industry."
The debate ended last night and a formal vote will express support for the measure this morning.