Italy

Following political scandals and accusations of corruption, Italy's state-subsidy system has undergone major reform during the 1990s. In September 1998, the Ministry for Culture announced a reduction in the annual number of films the state would fund, while increasing those film's budgets. At the same time, the process of applying for funding was drastically reduced to give more transparency to the system.

There are a number of Italian subsidy funds that address both commercial and cultural remits. Up to 70% of the total budget can be loaned through these funds, which can be backed by any of Italy's major banks, and in some cases this level can reach 90%. Repayment of the loan, which can be between US$24,000 and US$4.75 million, must be made within five years.

Films eligible for funding must either be international co-productions through a co-production treaty (of which ten exist), or Italian product under the following criteria:

1. The director, cinematographer, composer, costume designer and set dresser must be Italian.
2. The majority of principal actors and 75% of non-principals must be Italian.
3. Italian studios should be utilised whilst the majority of location shooting should be done in Italy.
4. Italian technicians should make up the majority of the crew.
5. The film must be at least 75 minutes long with Italian as its primary language.