Czech government ministers used their appearance at the Karlovy Vary International Film Festival on Tuesday to reaffirm their support for the country’s film industry amid rising global competition and geopolitical uncertainty. Minister of Finance Zbyněk Stanjura and Minister of Culture Martin Baxa spoke at a press conference about recent changes to Czech production incentives, while also responding to questions about potential policy shifts under U.S. President Donald Trump that could impact international film production.
The conversation at the 59th edition of the long-running festival touched on broad industry concerns, from an escalating “incentive war” among global production hubs to the future of foreign market access in the United States. A newly introduced levy on streaming services operating in Czechia also featured in the ministers’ remarks, as the government continues to reshape how international platforms contribute to local cultural output.
Ministers defend new incentives amid global “war”
Czechia’s revised incentive scheme came into effect in January 2025, raising the standard rebate from 20 percent to 25 percent, and offering up to 35 percent for animated and digital projects. Speaking to reporters in Karlovy Vary, Finance Minister Stanjura acknowledged the growing global competition for foreign productions but said the country was positioning itself strategically.
“Any financial gap between what our country and others offer is hopefully compensated by the quality of our infrastructure and our skilled professionals who know how to make a good film and good art,” he said, via interpreter. He added that the cap on available incentives had also been increased, allowing for more large-scale productions to benefit from the program.
Stanjura cautioned against an “incentives war,” however, saying the escalating race to outspend rivals was not sustainable. “I’m saying let’s not get into a war of incentives,” he said. “But if we said we’re not going to support this industry, it would be a disadvantage for our industry.”
Culture Minister Baxa echoed those sentiments and emphasized that incentives were just one part of the Czech Republic’s offer to international producers. “We believe we have a unique combination of strong infrastructure, a talented workforce, and now competitive financial support,” he said. He also announced that the search for a director to lead the new Czech Audiovisual Fund had been launched, with a final appointment expected by November.
Trump tariffs and new streamer levy raise stakes
Stanjura was also asked about the potential impact of recent comments from President Trump regarding tariffs on foreign film imports and efforts to bring more production back to the United States. The finance minister suggested that while Trump’s strained relationship with Hollywood is well known, countries like Czechia can continue to compete with a strong package of incentives and expertise.
“We have to see how the discussions go,” Stanjura said of the U.S. policy outlook. “But I believe that if you have good professionals and incentives, then you have something to offer.”
Beyond the transatlantic dynamics, the Czech government is also adjusting how it deals with foreign streamers. Starting this year, all streaming platforms operating in the country—regardless of their national origin—must contribute 3.5 percent of their Czech revenue. At least 1 percent must be paid as a direct levy, while the remaining 2.5 percent can be either invested in local content or paid as an additional fee.
“We don’t have any idea how much money we will get from the VOD platforms,” Baxa admitted, noting that the first round of contributions had not yet been assessed. However, he added that platforms like Netflix would now be encouraged to either fund or acquire Czech productions. “That means we must wait for the first time they send us money.”
The changes come at a time of renewed visibility for the Czech film sector, which has seen a resurgence in international activity following the post-pandemic production slowdown. Major Hollywood and European productions continue to shoot in Prague and other parts of the country, taking advantage of competitive costs and established infrastructure.
The 2025 Karlovy Vary International Film Festival continues through July 12, with appearances from Stellan Skarsgård, Dakota Johnson, Peter Sarsgaard, and Vicky Krieps, all recipients of this year’s awards. Michael Douglas also made a surprise appearance, receiving a special statuette during the festival’s opening weekend.
