Collaborationbetween the Austrian and Luxembourg film and televisionindustries has been given amajor boost with the signing of aco-production treaty between the two countries.

Theagreement will recognise films made under the auspices of the treaty asnational films and will allow Austrian and Luxembourg co-producers to benefitfrom all of the incentives available to the film industry in both countries solong as the financial participation of the co-producing partners is at least20%.

Thisis the fifth co-production treaty concluded by Luxembourg after similaragreements Quebec, Canada, France and Germany, while Austria already had six inplace with Germany, Switzerland, France, Italy and Spain.

Despitethe absence of a formal co-production treaty a number of films have been madeby producers from the two countries in recent years. The latest example is Pol Cruchten's Perl Oder Pica,which was co-produced by Vienna-based Amour Film with Luxembourg's Red Lion and backedby the Luxembourg Film Fund, Austrian Film Institute (OFI) and the Vienna Film Fund,and is currently in postproduction in Vienna.