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Forms of aid (State aid schemes) in the cultural and creative industries

Of all the cultural (literature and print media, music, audiovisual and multimedia) and creative (design, architecture, advertising) industries, Advertising (15%), Audiovisual Media (11%) and Architecture (10%) contribute the most to value added and GDP[1]. Audiovisual culture thus makes a significant contribution to the shaping and development of the cultural industry as a whole, while the cultural industry is also one of the most dynamic areas of European economic development.

The importance of cultural and creative industries around the world has been growing in recent decades, as evidenced by the inclusion of this issue in various strategic documents at both local and international level.

The value created within the cultural or creative industries generates economic value in the form of individual creative input or artistic talent based on the appreciation of intellectual property (e.g. computer games, advertising, film, music, visual and performing arts)[2].

It follows from the above that the cultural industry contributes significantly to the creation of GDP and is thus a non-negligible economic sector that also deserves support from public finance (e.g. in the form of state aid, subsidies or loans).

In the field of the cultural industry, i.e. in all areas covered by the cultural industry, it is possible to apply in Slovakia for:

1. de minimis state aid[3]- the subject of the scheme in the field of cultural and creative industries ( de minimis aid scheme) is the provision of de minimis aid in an indirect form, i.e. by providing advice, consultation and support services on preferential terms for the purpose of developing interest in entrepreneurship, promoting business entry and developing the activities of start-ups in the cultural and creative industries; de minimis state aid is mostly provided by government ministries, state agencies and state call for grant applications
2. State aid in the form of:
   1. subsidies - provided by the Ministry of Culture of the Slovak Republic from the state budget, for example, for the restoration, protection and development of cultural heritage in the field of monuments, activities in the field of culture, art and creative industry, support for local broadcasting or support for the culture of persons with disabilities or otherwise disadvantaged groups of the population;
   2. loans or
   3. scholarships.

State aid in the field of culture and the cultural industry is provided by the Ministry of Culture of the Slovak Republic and, since 1 January 2009, by the Audiovisual Fund, which is a public institution (for the support and development of the audiovisual culture and industry (hereinafter referred to as the "Audiovisual Fund"). The Fund has replaced the grant programme of the Ministry of Culture and has considerably expanded the possibilities and sources of support. Another body providing funding to support artistic activities, culture and the creative industries is the Fund for the Promotion of the Arts (hereafter referred to as 'the Fund'). The Fund for the Promotion of the Arts is also a public institution which provides funding in particular for the creation, dissemination and presentation of works of art; for the promotion of international cooperation; for educational programmes in the field of art, culture and the creative industries; and for scholarships for individuals who contribute creatively or through research to the development of the arts and culture.

Many municipalities also provide funds in the form of grants or loans, either as repayable or non-repayable financial assistance, according to their financial possibilities.

The coordinator of state aid is the Antimonopoly Office of the Slovak Republic[4]

The Audiovisual Fund provides financial resources to authors of Slovak audiovisual works and producers of Slovak audiovisual works, to persons for the renewal and development of the technological base for the production and dissemination of audiovisual works, for the implementation of public cultural events in the field of audiovisual culture, and for the dissemination and presentation of audiovisual works.

The detailed focus of the Fund's support for audiovisual productions for a given calendar year is regulated by the structure of the Fund's support activities for the year 2024[5] under which it is possible to receive support in the form of grants in the following programmes:

Programme No. 1 Creation and realisation of Slovak audiovisual works:

• Creation and realisation of Slovak audiovisual works, development, creation and production of Slovak audiovisual works as well as audiovisual works in which a Slovak co-producer has a minority co-production share.

Programme No 2 Distribution and other public performance of audiovisual works:

• Dissemination and public performance of audiovisual works, support for public cultural events involving audiovisual works, presentation of Slovak audiovisual works and Slovak audiovisual culture in the Slovak Republic or abroad

Programme No 3 Research, education and editorial activities in the field of audiovisual culture:

• Professional research, training and editorial activities in the field of audiovisual culture and industry, support for the mobility of audiovisual professionals and scholars abroad in order to acquire new knowledge in the field of audiovisual culture and industry in the world;

Programme No. 4 Development of audiovisual technologies in the Slovak Republic:

• Support for the technological base in the field of production, dissemination and presentation of audiovisual works to the public (e.g. support and development of the technological base and equipment of cinemas in the Slovak Republic);

Programme No. 5 Support for the audiovisual industry in the Slovak Republic:

• funding will be provided for the realisation of a film project (independent fiction / documentary / animated audiovisual work).

The Audiovisual Fund shall provide support in the form of scholarships in the various sub-programmes of programmes 1 to 5 above

 e.g.: for authors or co-authors of Slovak audiovisual works in development or for film professionals, for researchers to carry out a specific research task, for film professionals for their confirmed participation in events providing individual training or professional training with a publicly presented output for the Slovak audiovisual environment. The scholarship is not intended for individual training in the form of accredited full-time study at any level at a university or other school.

The Audiovisual Fund may lay down specific conditions in the grant agreement on the Fund's share of the income from the commercial exploitation of the project, whereby it will grant a grant to an applicant who demonstrates in writing that it has secured co-financing (from its own or other sources) to finance the project for which the funds are requested[6].

In the application for support for audiovisual culture, the applicant shall indicate the form and amount of funding requested and shall attach a description of the project, a budget, documents relating to the identification of the applicant, affidavits and, where appropriate, other documents specified by the Audiovisual Fund for the time period in question in the call for applications for support for audiovisual culture[7].

The Fund for the Promotion of the Arts aims to support artistic activities, culture and the creative industries, providing funding[8] for the creation, dissemination and presentation of works of art and their reflection, for the promotion of international cooperation in the field of artistic activities, culture and the creative industries, for educational programmes in the field of art, culture and the creative industries, for scholarships for individuals, for the preservation, development and accessibility of cultural heritage, except in the field of heritage, and for the creation, development and production of musical works primarily intended for radio broadcasting.

The Fund supports applicants in the form of grants and scholarships in areas such as creative industries, digital games, traditional culture/cultural outreach, education and research, visual arts and other artistic fields such as dance, theatre, music, literature and museums/galleries. Like the Audiovisual Fund, the Fund provides funding to support specific areas within defined programmes. The funds earmarked for the support of each cultural area are set out in the Support Activity Priorities for 2024 in the following programmes[9].

Programme No. 1 Art:

• Creation, presentation and dissemination of professional non-commercial art primarily produced in Slovakia, in particular theatre, dance, music, visual arts, literature and interdisciplinary artistic activities.

Programme No. 2 Events, cultural centres and magazines:

• Non-commercial arts projects implemented in Slovakia, in particular theatre, dance, music, visual arts, literature, interdisciplinary artistic activities and traditional culture, projects implemented in international co-production and/or cooperation.

Programme No 3 Research and educational activities:

• Professional reflection and critique of all types of art, implementation of educational activities designed primarily for professional audiences.

Programme No 4 Traditional culture and cultural outreach:

• Preservation, development, presentation, promotion and dissemination of traditional culture and folklore of rural and urban environment, non-professional artistic creation, cultural and educational activities, local and regional culture (preservation, development, presentation, promotion and dissemination of non-professional, non-commercial artistic creation).

Programme No 5 Memory and heritage institutions:

• Strengthening the role of memory and fund institutions in society, improving the state of professional care of the existing collection and library holdings of the Slovak Republic, their dissemination and making them accessible to the general public.

Programme No. 6 City of Culture:

• Support for one city within the Slovak Republic to host a series of artistic and cultural activities, events and presentations throughout the year aimed at developing the city's culture and providing residents and visitors with a living experience of different types and forms of contemporary art.

Program No. 7 College Public Art Activities:

• College public art activities focused on the presentation and dissemination of professional, non-commercial art primarily produced in Slovakia and professional educational events primarily in the areas of theatre, dance, music, visual arts, literature, traditional culture, and interdisciplinary arts activities.

The Fund grants scholarships only to natural persons or to a professional artist registered in the register of professional artists or to another cultural professional registered in the register of other professionals, for the development of creation, education, professional research and international mobility in the field of art, culture and creative industry. Support in the form of a scholarship earmarked non-repayable financial support paid by the Fund on a one-off or recurrent basis over a specified period of time, according to the contract.

The Fund shall provide the applicant with funds on the basis of an application, in which the applicant shall specify the form and amount of the funds requested. The application for funding in the form of a grant or a loan shall be accompanied by a document identifying the applicant (extract from the relevant register), a description of the project, the total project budget including a cost estimate, an affidavit, a certificate of payment of the administrative fee, and any other documents required by the Fund.[10]

Forms of support for the cultural and creative industries are a broad topic, encompassing a wide range of initiatives and measures, and it is therefore not possible to deal with them in detail individually. However, we are always ready to provide our clients with more detailed information on the specific forms of support in the cultural and creative industries that are relevant to their specific activities.

SOURCES:

Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid

Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market under Articles 107 and 108 of the Treaty on the Functioning of the European Union as de minimis aid

Act No 292/2014 Coll. on the contribution from the European Structural and Investment Funds and on amending and supplementing certain acts

Act No 299/2020 on the provision of subsidies within the competence of the Ministry of Culture of the Slovak Republic

Act No. 357/2015 Coll. on financial control and audit and on amendment and supplementation of certain acts

Act No 358/2015 Coll. on the regulation of certain relations in the field of state aid and minimum aid and on amendment and supplementation of certain acts (Act on State Aid)

Act No 516/2008 Coll. on the Audiovisual Fund and on amending and supplementing certain acts

Act No 523/2004 Coll. on Budget Rules of Public Administration and on Amendments and Additions to Certain Acts, as amended

Act No 540/2001 Coll. on State Statistics, as amended

Act No. 284/2014 Coll. on the Fund for the Support of Art and on the amendment and supplementation of Act No. 434/2010 Coll. on the provision of subsidies within the scope of the Ministry of Culture of the Slovak Republic, as amended by Act No. 79/2013 Coll.

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