Ciudad de la Luz film studios investigation by European Commission

Public funding of the Ciudad de la Luz film studios in Alicante is under scrutiny by the European Commission, who have announced an in-depth investigation to determine if funding from the Generalitat de Valencia, the regional government, could have distorted competition between European studios. It follows complaints from two film companies in Europe, and there are concerns that the Generalitat’s investment could have violated European regulations on state aid. Brussels said the Ciudad de la Luz complex is wholly owned by a company which is itself owned by the Valencia government through the Sociedad de Proyectos Temáticos de la Comunitat Valencia.
The European Commissioner for Competition, Neelie Kroes, said in a statement released to the press that the studios have so far received 200 million € of public money, and pointed out that the final amount could be higher once construction is complete. The EC said the Spanish authorities’ argument is that the public support was not state aid as a private investor would have invested on the same terms: the statement adds that the Commission, ‘doubts that a private investor would have provided 100% funding for such a new large-scale entrant in a competitive market.’
The latest Asterix movie, Asterix at the Olympic Games, was shot at the Ciudad de la Luz, and premiered in Spain earlier this month.

Posted in: Alicante