French filmmakers warn of crisis over 2027 budget proposals

Prominent French filmmakers and producers are warning of a potential crisis in the national film industry due to proposed measures in the 2027 budget draft. A collective of over 170 directors, including Jacques Audiard, Julia Ducournau, and Justine Triet, has urged the government to maintain a 10% VAT rate on pay-TV subscriptions.

The government's proposal to increase VAT by ten points on pay-TV subscriptions specifically targets Canal+, which estimates the cost at 200 million euros. Canal+ CEO Maxime Saada has threatened to terminate a 980 million euro film financing agreement if the tax hike proceeds, potentially reducing the number of funded films by half or more.

Additional budgetary concerns involve the shrinking of public funding. The budget for France Télévisions is projected to decrease by 47 million euros by 2027. Furthermore, there are proposals to withdraw 35 million euros from the Centre national du cinéma et de l'image animée (CNC), the central body for French film financing. Industry experts warn these combined cuts could result in 400 fewer films being produced over the next five years, averaging a loss of 80 productions annually.