The European Motion Picture Producers' Association (EMPA) iscalling for Germany's Minister of Finance Hans Eichel to change the MediaDecree's regulations governing international co-productions as a matter ofurgency.
According to EMPA, the Media Decree, as it now stands, makesit impossible for foreign producers to co-produce with Germany.
While German producers participating in internationalco-productions risk that their production expenses will be allocated for taxpurposes to a foreign permanent establishment (i.e. the non-Germanco-producer), co-producers outside Germany participating in a co-productionwith a German fund or production company would be required to establish aGerman permanent establishment and be subject to German taxation.
The fact that European producers were having to forgoworking with German producers was "especially damaging because Germanyalways was (and is) a major territory for film production andexploitation," the petition text said, adding that the "Media Decreeis not only cutting off Germany from international film production but is alsoweakening the whole European film industry!"