Former Minister of Culture Rein Lang (Reform) asked in an interview with Õhtuleht for someone to explain what Estonian film has gained from the film rebate fund. I will attempt to answer with some concrete examples of why Estonia, like the rest of Europe, needs a rebate fund called Film Estonia.

Incidentally, only Denmark, often referred to as the "Hollywood of Europe," lacks a similar system, but its local film sector has access to a budget of nearly €100 million. This is the result of consistent, long-term funding of the audiovisual sector.

As long as we are unable to offer domestic films a budget on a similar scale to differentiate ourselves from the rest of Europe, we, too, must use a rebate fund. Even the United Kingdom cannot do without it, where the tax incentive stands at 40 percent. They tried to abolish it briefly, but later reinstated it with an even higher rebate rate. Starting in 2025, even countries with long film histories are increasing their tax incentives – Germany to 30 percent and France to 40 percent.

Film Estonia's larger projects significantly impact Estonian film production, filmmakers and the entire film culture while developing skills and contacts. Producing films solely with domestic Estonian funding or engaging in international co-productions within Europe does not provide a comparable experience.

The film industry is a business of trusted relationships. Participation in large projects builds strong connections, the kind that cannot be formed without standing shoulder to shoulder on a creative project. Thanks to the experience gained here, Estonian producers are increasingly considered for filming larger projects. Major foreign shoots enhance international skills and lay the foundation for international career paths. Foreign shoots also involve entire specific areas of work that simply do not exist in Estonian film production.

A well-known example is how an Estonian lighting team, originally set to work only locally, was invited to continue with the "Tenet" production at other shooting locations as well. This opportunity also launched the career of artist Tiiu-Ann Pello, who was invited to work as a set designer on "Gran Turismo" (global box office $122 million). Similarly, Triin Valvas, a graduate of the Estonian Academy of Arts' scenography program, has participated in multiple projects, including the film "Wonka" (global box office $634 million), after her work on "Tenet," and now works as a production designer in London.

In addition to these examples, dozens of people regularly work on various Nordic audiovisual projects thanks to the consistent Film Estonia program, which opens new doors for our talented creatives. Film professionals with such experience are a tremendous asset.

Another recent example is the film "Bubble & Squeak," which was selected for the prestigious Sundance Festival and filmed entirely in Estonia using local film professionals. Only the director, cinematographer and designer came from abroad. The Estonian co-producer of the film noted that the process was so positive that, in addition to Estonia's excellent filming locations, there is a desire to utilize our film professionals in future projects.

Furthermore, the film rebate program has a tangible and measurable economic impact. For instance, the production of the series "Agency," filmed in Estonia this year, left over €7.5 million in the country. The shooting lasted two weeks, while preparations took eight weeks and the pre-production process lasted six months. Estonian background actors accounted for over a thousand paid and taxed shoot days, and nearly 800 people were involved in total. The payroll budget for the project in Estonia alone amounted to €628,000. Four Estonian actors played significant roles, which could serve as a springboard for their involvement in future projects.

Considering all of the above, the Estonian film rebate fund was one of the few areas I decided to exempt from budget cuts within the Ministry of Culture's fields for 2025. The Film Estonia budget this year was €6 million, and it will not decrease next year. Support for the domestic film industry will also remain unchanged, as a successful ecosystem requires a balance between complementary parts.

Of course, it can be agreed that Estonian film production needs larger financial support. However, we must not underestimate the importance of Film Estonia projects, as they provide work for technical crews and creatives, retain professionals in the field, and open new doors to the international film industry.

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