No L 208/38 Official' Journal of the European Communities 20. 7. 89 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 21 December 1988 on aid granted by the Greek Government to the film industry for the production of Greek films (Only the Greek . text is authentic) (89/441/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, . and in particular the first subparagraph of Article 93 (2) thereof, ‘Having given notice to the parties concerned to submit their comments pursuant to-the above provision, and having regard to those comments, Whereas : I Following repeated requests from the Commission, in particular by letters dated 13 October and 27 November 1986, the Greek Government tardily informed the Commission by letter dated 30 December 1986 of the existence. of a law establishing aid for the Greek film industry (Law No 1597 of 12 May 1986, which entered into force on 21 May 1986). The Law provides. for aid in the following forms: — first, automatic subsidies (Article 7. of the Law) equal to the -public entertainment tax on films screened in cinemas, amounting to 12 % in- Athens and Salonika and 8 % elsewhere. Payment of the subsidies ceases when they equal production costs, — second, selective aid in the form of participation in film productions. or State financing consisting  in advances granted - by the Greek Cinematography Centre for the production of Greek films (Article 18 of the Law). Participation in the production of films is of the order of 50 % of the cost of the film ; financing amounts to 25 %. Of 25 full-length films produced in Greece in 1987, 15 were granted State financing which became non-returnable subsidies when revenue from the films did not cover production costs. Prizes and endorsements for quality accompanied by cash prizes are.also awarded for Greek films completed in the preceding year (Article -8). The Law defines the basic characteristics - of the prizes, whilst the Ministry of Cultural Affairs adopts the implementing details. Interest rates-on bank loans or financing, irrespective of - their form, for the production of Greek films may not exceed those applicable to business loans (Article 10 (1)).. In addition, the aid -granted to cinema operators in the form  of subsidies representing a percentage of the entertainment - tax is subject to the compulsory. programming of Greek films in those cinemas (Article 7 (4) of the Law). ' : The automatic subsidies, the prizes for quality, the terms of the production loans or financing and the compulsory programming rule are incompatible with the EEC Treaty as they are associated with a nationality condition which is discriminatory in respect of nationals of other Member States. Similarly, the Commission considers. that the selective film production aid provided for by Article 17 of the Law, granted in 1987 to 15 of the 25 films produced that year, appears to.be awarded at least in practice to films meeting the definition of Greek films given in Article 5 of the- Law. Such. aid 1is- therefore discriminatory and incompatible with the common market. The necessary funds for the aid, managed by the Greek Centre for Cinematography,-come from the tax levied on. all films shown in Greek cinemas, amounting on ‘average to Drs 600 to 650 million a year, or ECU 3 600 000 to 3900 000.