The Swedish film industry finds itself in a precarious situation, facing yet another blow from the government’s austerity measures. Despite already having one of the lowest levels of film funding in Europe, the government is poised to further reduce the production incentive, a vital mechanism for supporting film and television production in the country. This decision, outlined in the regulatory letter to the Swedish Agency for Economic and Regional Growth for 2025, proposes a reduction from 100 million SEK to 87 million SEK, a significant cut to an already insufficient budget. This move appears to contradict the government’s stated goal of strengthening Sweden’s competitiveness within the creative industries, leaving the already struggling film sector in a state of uncertainty and concern.
The production incentive, introduced in 2022 by the previous government, was a long-awaited measure designed to revitalize the Swedish film industry and bring back productions that had been forced to relocate abroad due to a lack of financial support. Prior to the incentive, Swedish filmmakers frequently had to move their productions to countries like Hungary, Estonia, Ireland, Czech Republic, the Netherlands, and the United Kingdom, often transforming foreign landscapes to resemble Swedish settings. This not only led to a loss of valuable expertise within the Swedish film industry but also diminished its international standing. The introduction of the incentive had a positive immediate effect, attracting 25 productions with a total budget exceeding 1.7 billion SEK in its first two years, and bringing back productions initially planned for foreign locations.
The existing production incentive, while a positive step, remains severely underfunded and unpredictable. The current annual budget of 100 million SEK is a mere third of the amount recommended by the Swedish Agency for Economic and Regional Growth’s initial investigation, highlighting its inadequacy from the outset. The high demand for the incentive is evident in the rapid depletion of funds during the last application round, which saw the entire budget allocated within a minute. This creates a highly competitive and essentially random system, more akin to a digital lottery than a fair and transparent funding process. The insufficient funding and resulting unpredictability make it difficult for filmmakers to plan and secure financing, further undermining the stability of the Swedish film industry.
Furthermore, a comparison with other European countries reveals the stark disparity in public funding for film and television production. Sweden allocates a meager 36 SEK per capita, significantly lagging behind Denmark and Norway, which contribute 75 SEK and 104 SEK per capita, respectively. Both these Nordic neighbors are also planning further increases to their film and television support, widening the gap even more. This underscores the underinvestment in Swedish film and raises questions about the government’s commitment to supporting a culturally and economically significant industry. The proposed reduction in the production incentive, given this context, appears counterproductive and detrimental to the industry’s long-term prospects.
International examples demonstrate the substantial economic benefits of well-structured production incentives. The United Kingdom’s program boasts a return of 8.30 pounds for every pound invested, and similar success stories are seen in smaller countries like Austria and Ireland. In Austria, each euro invested generated three euros in direct production expenses, boosting local economies through wages and business activity, while also returning between 1.20 and 1.50 euros in tax revenue. Ireland’s results are even more impressive, with one study showing a return of 3.80 euros for every euro invested, along with significant job creation. These examples highlight the potential for film and television production to stimulate economic growth and generate substantial returns on investment, a potential that the Swedish government seems to be overlooking. Even more, countries like the UK, Spain, Iceland, Belgium, and Austria, recognizing the economic impact of these incentives, have opted to remove annual budget caps altogether, further emphasizing the shortsightedness of the proposed Swedish cuts.
The proposed reduction contradicts the government’s own strategy for the cultural and creative industries, which aims to establish Sweden as a leading nation in the creative sector by 2033, with increased exports and growth. The film and television industry, especially in areas like animation and visual effects, is a key driver of the creative sector and crucial for Sweden’s future competitiveness. A robust film industry can contribute significantly to economic growth, job creation, and cultural influence. Cutting support at this critical juncture sends a damaging message and threatens to stifle the industry’s potential. The government faces a choice: either continue down a path of disinvestment and decline or embrace a bold strategy that invests in a sector with proven potential for economic and cultural returns. Strengthening the production incentive is not just about supporting film and television production, it’s about investing in Sweden’s future as a creative and competitive nation. A thriving film industry can be a source of national pride, economic growth, and cultural influence, all of which are at risk if the government continues down its current path.
