Following the Cabinet’s decision on the government’s draft federal budget for 2027, the German film industry is facing a new fiscal reality. Whilst the federal government is focusing the budget as a whole on investment, security and economic transformation, federal funding for the film industry is set to be significantly lower than in the current year.
According to the government’s draft bill, a total of 214 million euros is earmarked for the German Film Fund (DFFF) and the German Motion Picture Fund (GMPF) in future. Compared with the previous funding level of 250 million euros, this represents a reduction of 36 million euros.
A change of course following the increase
The planned cut marks a change of direction. It was not until the 2026 budget that funding for economic film support had been significantly increased, with a view to strengthening Germany’s competitiveness as a production location and attracting more international productions to the country.
Now, part of this increase is being withdrawn. For producers, this means, above all, less certainty when planning the financing of future projects. Particularly in the face of international competition, reliable funding mechanisms that can be relied upon over the long term are regarded as a crucial factor in attracting business to a location.
No funding for a programme for the future of cinema
As well as reducing production funding, the government’s draft bill also makes no provision for new budgetary resources for a ‘Cinema for the Future’ programme.
In recent years, the programme has supported numerous investments in modernisation, digitalisation, accessibility and energy efficiency measures. Whether follow-up funding will be provided, and in what form, is now the subject of parliamentary budget deliberations.
This point is likely to be of particular importance to smaller and independent cinemas, as investment in infrastructure can often only be realised with the help of public funding.
Consolidation of the federal budget affects numerous areas of funding
The cuts to film funding are part of a comprehensive budget consolidation programme. According to the Federal Government, the government’s draft budget was designed to close the existing funding gap whilst enabling record levels of investment in infrastructure, the economy, security and defence.
Numerous departments are affected by the cost-cutting targets. Film funding is no exception; rather, it forms part of a broader shift in priorities within the federal budget.
The decision will only be taken in the Bundestag
For the film industry, the cabinet decision is not yet the final word. The government’s draft bill will now be debated in the Bundestag, where it may still be amended. Experience shows that adjustments are regularly made, particularly to the culture budget.
Consequently, the attention of the associations, producers, cinema operators and the federal states is now focused on the forthcoming deliberations in the Budget Committee. It is there that a decision will be made as to whether the planned cut to film funding will go ahead or whether additional funds will be allocated to the DFFF, the GMPF or a ‘Future of Cinema’ programme.
Until then, one thing is certain: the Federal Government is setting different fiscal policy priorities in its draft 2027 budget. For the film industry, this marks the start of a crucial phase in which parliamentary deliberations will play a decisive role in shaping the future framework conditions for Germany as a film production location.