Budget slashes raise alarm for Italy's renowned film sector

Italy’s film industry, celebrated for iconic filmmakers like Federico Fellini and contemporary talents such as Paolo Sorrentino, is bracing for significant challenges due to proposed government budget cuts.

The draft budget for 2026, presented by Prime Minister Giorgia Meloni’s right-wing administration, includes a reduction of €150 million  ($175 million) from the existing  €700-million support fund for the sector, with an additional €50 million planned for 2027. Currently, approximately 124,000 people work in Italy’s film, television and radio industries.

This latest reduction follows a previous cut of €50 million last year. The move comes as Europe’s largest film studio located in Southern Rome, Cinecitta, is working to position Italy as a leading player in cinema again aiming to increase its production capacity by 60% by 2026. Notable projects slated for filming this year include Mel Gibson’s “The Resurrection of the Christ”, a sequel to his 2004 film”The passion of the Christ”.

 

Culture Minister Alessandro Giuli has defended the cuts, citing  a necessary response to instances of fraud within the industry, particularly involving “ghost films” that have received substantial subsidies but were never produced. In one recent case, a tax credit of about $1million was awarded to a US citizen now implicated in double murder in Rome for a film that never materialized.

Critics within the film industry argue that these cuts are politically motivated, with members of Meloni’s ruling coalition frequently alleging that Italy’s cultural sector, especially its film industry, is dominated by leftist ideologies.