The German government is facing internal pressure and potential international repercussions over a proposed law mandating investment from streaming services like Netflix into the nation’s film industry. Culture State Minister Wolfram Weimer has cautioned against the legislation, warning of significant and adverse reactions from the United States.
The proposal, championed by the Social Democratic Party (SPD), aims to bolster the struggling German film sector through legally enforced contributions from global streaming giants. However, Weimer argues such a measure presents a cascade of problems. He highlighted the anticipated burden of bureaucratic costs, the creation of a substantial market intervention likely to trigger legal challenges from affected companies and difficulties in aligning the law with European Union regulations.
Most critically, Weimer emphasized the risk of escalating trade tensions with the U.S. The American government has reportedly signaled strong opposition to such a unilateral action, setting the stage for a potentially damaging trade dispute. “We need no further arm wrestling on trade policy” Weimer stated in an interview with “Der Stern”, emphasizing the desire for economic success on both sides of the Atlantic.
Instead of legally binding mandates, Weimer is advocating for a collaborative approach, urging the SPD to adopt strategies that encourage voluntary investment from streaming platforms. He expressed confidence in Germany’s potential to compete with Hollywood’s production capabilities and underscored his commitment to revitalizing the beleaguered German film industry.
Recognizing the escalating debate within the governing coalition, the Culture State Minister anticipates a swift resolution. A compromise proposal has emerged from parliament, suggesting a system of voluntary commitments to be evaluated midway through the legislative term. Should these commitments fail to materialize, the contentious mandated investment law would be reconsidered. Weimer voiced his support for this compromise, projecting a solution would be reached within weeks. The situation reveals a delicate balancing act between addressing the legitimate concerns of a struggling national film industry and avoiding a potentially destabilizing trade conflict with a crucial economic partner.
