Europe's leading film producing nation, France is considering withdrawing from Eurimages, the Council of Europe-backed support body.

The proposal is only one of several suggestions made by the country's film regulator, the Centre National de la Cinematographie (CNC), in a report into Eurimages' usefulness. Although France is a net beneficiary - its producers receive more aid than the French state pays in - the CNC's conclusions are mixed.

The CNC says that Eurimages' budget has been stuck at Euros18.5m since 1996 and that its leverage has diminished. Today it amounts to little more than complementary financing, allowing production budgets to be either completed or optimised. "It does not play a determining role in the launch of co-productions," and is typically sought after other finances have been assembled.

Eurimages has succeeded in stimulating the number of co-productions within Europe over its 15-year existence and today is involved with one in two multi-national features within the region. The CNC says that while a quarter of its projects have gone on to win festival prizes, Eurimages' other objective, of improving the circulation of films, has not been fulfilled. Only 45% of its films have screened commercially outside the countries involved in the co-production.

A whole chapter of the CNC's report is dedicated to the bureaucratic nightmare of applying for funding from Eurimages and the lack of clarity about the organisation's decision making process. It cites a number of colourful criticisms, which it says are "manifestly justified". Even for a film that has been approved, the CNC describes "an obstacle course" where producers have to deliver huge amounts of paperwork as justification.

The report notes local producer criticism of the reform that separated Eurimages' funding into two separate categories; one for films of artistic merit and another for commercial pictures. But it says that French films have in fact been successfully funded from both sections.

The CNC says that if Eurimages is to continue it needs to be reformed and makes a number of suggestions concerning the funding decision- process and simplification of applications. Alternatively, if France is to leave Eurimages alternative funding measures should be put into place. These it suggests loosely could be bi-lateral, multilateral or involve transferring Eurimages' cash to the European Union.

In a move not directly connected to the report, France may now be in a better position to influence reform of Eurimages. Last week it was announced that former French culture minister Jacques Toubon has been appointed Eurimages president. His predecessor Gianni Massaro resigned last month in protest at the Council of Europe's excessive influence over the fund.