Although it offers a 20% tax rebate on film production, Hungary has been hampered in the past by its lack of studio space. This could be set to change. The new Korda Film Studio in Etyek, about half an hour's drive from Budapest, is expected to host Hellboy 2 this summer and another new studio, Stern Film in Pomaz, just north of Budapest, recently landed an adaptation of The Nutcracker, to be directed by Andrei Konchalovsky.

The Hungarian Film Commission works with other Hungarian film bodies to attract shoots to the territory, as Aniko Skorka Navai, the commission's US representative explains

How successful is Hungary at pulling in overseas production'
In the past few years we lost major projects - including Cold Mountain, The Chronicles Of Narnia and Hannibal Rising - which had been considering Hungary because we didn't have suitable soundstages or attractive financial packages. The introduction of the new film law in 2004 [which introduced tax benefits for productions] changed all that.

What could Hungary be doing better'
We are now focusing on co-ordinating and harmonising the pricing policy of government agencies responsible for issuing locations permits.

Which are your biggest competitors'
Hungary must reckon with a fast developing Lithuania, Slovakia, Romania and Bulgaria.