The battle for the heart of European cinema – will Agora EU protect the independent producer?

As the MEDIA programme celebrated its 35th anniversary in Cannes, a pivotal dialogue had emerged between the European Commission and the audiovisual industry. The major producer organisations have expressed deep concern regarding the removal of the term “independent production companies” from the new Agora EU legal basis, alongside the vanishing of the words "cinema" and "film" in favour of terminology focused on AI and big blockbusters.

Legal advisor Charlotte Lund Thomsen, who represents both Nordic and international producer associations, highlights that the structural changes are equally alarming. "We are not happy with being grouped in the same structure as news and press," Thomsen stated, noting that while those sectors deserve support, they should not share the same budget line. She warned that under the current proposal, if global developments require more funding for journalism, "those funds would then have to be taken from us".

The fight for a definition: "Business and legal certainty"

A central point of contention is the Commission's desire for more "room to maneuver" by not including a fixed definition of a independent production company in the new regulation. Thomsen argues this is a direct threat to the industry's stability. "It is absolutely central for us...that the definition from the current MEDIA programme is continued," she explained. Without this, she argues, it is impossible for a company to have "business and legal certainty*"* when forecasting projects that take years to finance and develop.

Virkkunen: Scaling up vs. the "European giants"

In response to industry fears, Virkkunen asserted that culture is a "basis for our democracy, security, and resilience", and confirmed a proposed 8.5 billion Euro instrument for 2028-2034. She argued that the new structure offers the "flexibility" needed to face global challenges and the dominance of big tech.

However, Thomsen countered that the Commission's underlying goal appears to be creating what Virkunen calls "European giants" - large, major production groups. For small markets like Denmark, Sweden, and Finland, Thomsen warns this strategy is "really dangerous", because these giants are unlikely to emerge from smaller territories. If the EU prioritises these majors, she argues, "our member states are the ones who will have to pick up the pieces and try to create balance again, and they cannot do that."

The AI crossroads and IP protection

One of the most critical themes stressed by Julie-Jeanne Régnault of the European Producers Club (EPC) is the importance of Intellectual Property (IP) remaining in European hands. At Cannes, Virkkunen appeared to align with this, declaring that "the right holder has the right to decide how his or her product is used”, particularly regarding the training of Large Language Models. Thomsen expressed encouragement at these words, but noted that facilitating licencing for small right holders who lack individual power remains a complex challenge.

The Nordic perspective: Creative courage over blockbusters

The discussion highlighted a fundamental disagreement on strategy. While Virkkunen speaks of "scaling" and "harmonisation”, the Nordic model remains rooted in "wild ideas" and the "creative courage" to produce original works that might otherwise be lost in a survival-of-the-fittest scenario. Independent producers are viewed as vital contributors to democracy through a unique perspective that cannot be replaced by "blockbuster ideology".

Looking ahead

While Virkkunen acknowledged the "very strong message" from the industry's open letter -signed by over 6,000 talents including Ruben Östlund and Joachim Trier - the battle over the Agora EU budget and its specific "envelopes" will continue in the European Parliament through the autumn. As Régnault noted, the risk remains that without specific protections and dedicated budgets for the independent sector, European stories will increasingly be controlled by global giants, turning "film" into a mere "tech product".

To the letter: CLICK HERE.
To the joint statement: CLICK HERE.