Aftermonths of conflicts, the Swedish Film Agreement - which sees $30m of governmentsupport channelled into local film-making - has been extended for another year,until the end of 2005.
Theagreement was due for renewal at the end of this year - but looked as though itwould be blocked following complaints from American distributors that Swedishexhibitors were making money on bookings via the internet and not passing themon to the production fund. The Swedish Film Institute called it the most severesituation in the history of the Swedish Film Agreement.
Earlierthis spring, a number of Swedish movies scheduled for early 2005, includingJosef Fares's new feature Zozo, were running the risk of being cancelledor postponed as a result of the conflict.
Now allparties have agreed on an extension of the agreement for 2005. The parties,which include representatives from the state and the Swedish film industry,have also decided to work on a new film agreement for 2006. The work is to befinished on Sept 30 this year.
"I am veryhappy and relieved that the parties have taken their responsibility and willwork on a solution to renew the film politics. A prolongation is naturally veryfavourable compared to the disastrous consequences that otherwise would have hitall parts of the film industry, said Ase Kleveland, CEO of the Swedish FilmInstitute.
Still,Kleveland adds that the near future will be harsh for the Swedish FilmInstitute.
"2005 willbe a difficult year when we will have to count on funding cuts in the region of$2.63M (SEK 20M). This means less money for film production as well as filmculture," she said.