European Commission EVP Henna Virkkunen on Film Funding Overhaul and Paramount-WBD Merger: It ‘Might Have to Be Reviewed Under Several EU Regulato…

Henna Virkkunen, Executive Vice President of the European Commission overseeing tech sovereignty, security, and democracy, attended the Cannes Film Festival amid controversy over the EU’s proposed AgoraEU initiative. The plan merges culture and media funding under Creative Europe, a move opposed by thousands of European filmmakers, including Pawel Pawlikowski, Lukas Dhont, and Rodrigo Sorogoyen, who warned it could disrupt the MEDIA Program, a 35-year cornerstone for EU film and TV production. Virkkunen dismissed concerns, stating AgoraEU builds on Creative Europe’s success while integrating the CERV program and adding a dedicated news media component to MEDIA+. She emphasized that independent production, distribution, and talent development will remain prioritized, ensuring cultural and linguistic diversity. However, she acknowledged fears that audiovisual sector gains could be diluted, clarifying that the initiative instead aims to address shared challenges faced by filmmakers and journalists, such as global platform dominance and AI disruption. The debate stems from the audiovisual sector’s push for autonomy, but Virkkunen argued that filmmakers and investigative journalists, despite distinct business models, share a common goal: shaping public opinion and democratic engagement. She framed AgoraEU as essential for building a resilient European public sphere, noting that films, documentaries, and journalism collectively influence how citizens perceive the world. Regarding the AVMS directive, Virkkunen confirmed an evaluation process has taken place since discussions in Venice, though specifics were not detailed in the interview. The directive’s implementation varies across Europe, and the Commission appears focused on assessing progress to refine future policies. Critics argue the merger could weaken the MEDIA Program’s impact, particularly for Oscar-winning projects like *Sentimental Value* and *The Favourite*. Virkkunen countered that the initiative reinforces—not dilutes—support, citing the need for unified strategies against algorithmic distribution and advertising erosion. The outcome of the Paramount-WBD merger, still under review, may also influence the timeline or substance of the acquisition’s regulatory approval.