The German government is facing internal pressure and potential international repercussions over a proposed law mandating significant investment by streaming giants like Netflix into German film production. Culture State Minister Wolfram Weimer has issued a stark warning against the legislative push, championed by the Social Democratic Party (SPD), citing the risk of escalating trade tensions with the United States.
Weimer, in an interview with “Der Stern”, detailed four key concerns surrounding the forced investment model. He argued that such a law would incur substantial bureaucratic costs, represent a dramatic intervention in the market – prompting threatened legal challenges from affected industry players – and pose significant difficulties under European law if implemented solely in Germany. Most critically, he cautioned that it would almost certainly exacerbate existing trade disputes with Washington. The US government has already signaled its disapproval of such measures.
The State Minister urged the SPD to reconsider its approach, advocating instead for incentivizing voluntary investment from streaming services to bolster the struggling German film industry. “Germany possesses the potential to compete on a level with Hollywood” Weimer stated, emphasizing the need to revitalize the sector. He cautioned against the “unnecessary economic power struggle” that a forced investment law would trigger, particularly given shared ambitions for economic success on both sides of the Atlantic.
A compromise is now anticipated within the ruling coalition, with parliamentary representatives putting forward alternative proposals. A review of the effectiveness of voluntary investment commitments is slated for the midpoint of the legislative term, with the possibility of reverting to the legal framework if the agreed-upon investments fail to materialize. Weimer expressed his support for this carefully calibrated approach, suggesting a resolution is within reach in the coming weeks. The incident underscores a broader tension within the coalition government: balancing the ambition to revitalize German cultural industries with the realities of international trade agreements and the potential for political fallout.