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Ciudad de la Luz to return €265 million in funding to Spain

By  |  May 8, 2012
Ciudad de la Luz to return €265 million in funding to Spain

After an in-depth investigation of €265 million received by the Ciudad de la Luz film studio complex, the European Commission determined that the public funding constitutes illegal state aid. The investigation found that no private investor would have invested on the same terms. Moreover, the funding granted by the Valencia Regional Government in 2000 “massively distorts competition” between European film studios. Joaquín Almunia said that there was “no need” to publicly fund the studio, as Spain and Europe’s film market is competitive.

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    As a result of the Commission’s decision, the funding must be paid back by the studio to Spain.

    Full content: EC Press Release

     

    Related content: The Economics of State Aid Control: Some Remarks (Mathias Dewatripont, Université libre de Bruxelles)

     

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