MPA Berlinale panel highlights urgency for competitive film incentives in Germany

Laura Zentner (Media Law Expert, GreenbergTraurig), Clement Schwebig (President and Managing Director Western Europe & Africa, Warner Bros. Discovery), Emilie Anthonis (President & Managing Director, MPA EMEA), Jörg Bachmaier (CEO of Studio Babelsberg) and Christian Sommer (MPA Germany)

By Mark Tchelistcheff

March 5th, 2025

With SXSW film rodeo ride about to begin it was only a couple weeks ago that Berlinale completed its 75th film festival with the largest number of local films.  Although the outlook for many looked dim due both to the downward spiraling economic forces and a new German federal government on the horizon the last-minute funding incentives in December 2024 by the German Federal Film Fund and the German Motion Picture Fund saw their production cost rebate levels raised from 25% to 30%.

For those looking at doing productions in German, the Berlinale panel organized by the Motion Picture Association (MPA) and the law firm Greenberg Traurig, industry experts discussed the present production climate and underscored the urgent need for competitive film incentives in Germany, with the consensus that the country is lagging behind in the global race for film production. The session, moderated by media law expert Dr. Laura M. Zentner, featured key insights from Jörg Bachmaier (CEO of Studio Babelsberg), Clement Schwebig (President and Managing Director Western Europe & Africa, Warner Bros. Discovery), and Emilie Anthonis (President & Managing Director, MPA EMEA). The panel was introduced by Christian Sommer (MPA Germany) and Thomas Hacker (Member of German Parliament and Media Policy Spokesperson for the FDP Bundestag group), who critiqued past government inefficiencies and emphasized that the real solution lies in implementing tax incentives but that most likely he would be out of the game after the elections.

Germany’s film funding system is facing a significant stalemate. Unlike countries such as Spain, Austria, UK and others, which have attracted international productions with tax incentives and flexible funding models, Germany is still stuck in political gridlock. Negotiations between federal and state governments over a tax incentive model have stalled, and while a recent 30% increase in funding offers some relief, the lack of a comprehensive tax incentive system threatens to hinder long-term competitiveness. Industry leaders are skeptical that Germany will introduce the necessary tax incentives before 2026, though some hope that post-election budgets for 2025 and 2026 might provide a path forward.

Jörg Bachmaier of Studio Babelsberg with an optimistic outlook for the future emphasized that while the recent funding boost is a step in the right direction, it is not enough. He called for a 30% tax incentive, an automated system, and reduced bureaucracy. Bachmaier suggested that policymakers should prioritize achievable reforms like tax incentives rather than diving into more contentious issues like investment obligations. His message was clear: “We need win-win situations, not coercive measures. Less talk, more action.”

Clement Schwebig from Warner Bros. Discovery echoed the call for better incentives, stressing that without attractive tax breaks, major productions will go elsewhere. He pointed to recent Warner Bros. projects like The White Lotus and The Regime—filmed in Italy and Austria, respectively—both chosen because of favorable tax incentives. Schwebig acknowledged the recent German funding moves as a positive step but warned that without a sustainable and flexible tax incentive system, the industry will lack the reliability needed for long-term planning.

Emilie Anthonis, the head of the MPA in Europe, brought a global perspective to the discussion, noting Germany’s potential in the film market but lamenting its underperformance. Citing data from the European Audiovisual Observatory, she pointed out that while Spain produced 110 streaming originals between 2015 and 2022, Germany only managed 62. Spain’s success, she explained, is due to stable tax incentives, flexible funding, and regulatory predictability—attributes that Germany has failed to match. Anthonis urged Germany to adopt best practices from countries like Spain, Austria, and the UK, emphasizing the importance of stability and legal certainty.

As a beautiful sun set overlooking Berlin in the expansive windows from the Greenberg Traurig conference room, the panel concluded with a sense of urgency. While countries like Spain and the UK continue to strengthen their audiovisual industries with clear, long-term investment strategies, Germany risks falling further behind. Though on a positive note, Anthonis emphasized that despite the difficulties mentioned, Germany is an important market, with a need to exploit its growth potential stating that "Our members have been active in Europe for over 100 years and are deeply invested in the German market - both in production and distribution.”