Brexit and UK-EU27: How will culture fare?

The short answer is that nobody knows.  UK Prime Minister May is refusing to offer a running commentary on the British approach to negotiating the exit and EU27 is refusing to open negotiations in advance of the formal notification under the now infamous Article 50.

The nearest to anything like a policy view during the referendum campaign was Boris Johnson’s comment that the “UK is leaving the European Union but not leaving Europe”.  Oh that it would be that simple. The arts sector overwhelmingly voted to Remain. A view>  Simpler still to stay in but that’s another story.

This is the first in a series of postings where I look at the possible future UK-EU27 relationships in the culture arenas (and there is certainly more than one arena!).  To start with in this post I simply list the areas, and programmes, which need to be addressed in the Brexit negotiations. I don’t claim this is exhaustive so please drop me a comment and I’ll update the post.

Later posts will start to look at the implications.

I’m assuming the dark Brexit day will be sometime in 2019, before the elections to the European Parliament and before the next EU finance period from 2020. I’m also ignoring both any “transitional” arrangement and a straight switch to the EEA/Norway model as PM May wants a “bespoke” deal.  Many formal statements emphasise that the UK remains a member and so can still play its full part: see the Arts Council of England.  But then they would wouldn’t they!.

Let’s be clear about one thing. The Article 50 process means EU27 have the upper hand, by a long way. They will decide the terms of the exit.  Will culture be seen as a small area, with no EU competency, so can the UK/EU27 carry on as before?  Or will it be seen as the UK trying to cherry pick the “nice” parts of the EU?   Time will tell.

The specific areas fall into money, people and processes.

Money: funding sources from the EU which could dry up with a very hard Brexit.

People:  restrictions on the free movement of people both to the UK and from the UK to EU27

Processes:  how “access” to the single market could work, taxes, laws, standards, influence,

A fourth area covers external influences:  the UK economy, exchange rates and importantly the effects on the culture sectors in EU27 after Brexit.

Taken together they illustrate the complexity of Brexit (imagine the same issues multiplied across most of the UK economy).

In terms of impact we need to look from three different directions:

from the cultural and creative sectors: the producers

from the audiences and future audiences

from the effect on the 30 year momentum of the increasing influence, ambition and internationalism of the British cultural world

The worst case will be a serious and possibly slow shift to an inward looking insular society where because of money (lack of), difficulty, or even purpose the arts offer in the UK diminishes in ambition.  There is a risk the Brexit cultural debate will focus on the producers, the list below does.  The more important issue will be the effect on “the audiences” and the longer term momentum.

Creative Europe (or its successor).  Will the UK seek to remain and pay an annual fee ( as Norway or as Turkey until they withdrew earlier this year over a genocide reference and took their €2m+ annual fee with them).  The UK arts sector does well from Creative Europe.   Continued participation in Creative Europe after 2020 should also smooth the path to co-host a European Capital of Culture in 2023 as membership of Creative Europe is a pre-condition).  See Labour’s view >  and mine on ECOC2023>

Media programme, (part of Creative Europe) gives funds for cinemas in UK showing films from other EU countries (and these cinemas are by far the main locations for any foreign language films in the UK).  Supports pre-production costs (I, Daniel Blake received almost €100,000, The Kings Speech over €500,000), supports British films shown in the EU, has training programmes.  Funding also helps co-productions. A view>

Other Funding Opportunities> Erasmus+, Europe for Citizens, COSME, INTERREG, ERDF (helped fund Peaky Blinders) and more.  The British Council  is successful in winning  or managing EU projects, for example SHARE in South East Asia, European Voluntary Service, projects in China, Kosovo, Lebanon, Egypt. Will the British Council stay in the European Union Network of Cultural Institutes (EUNIC)? Will it take part in the new programmes of culture in the European Union’s external relations?  Is there any effect on the UK’s and the EU’s soft power?  A view>

Freedom of Movement.   The “Big One”.  Will UK arts organisations still be able to recruit staff from EU27?  Will the creative and cultural industry sector still be able to recruit?  Will existing EU27 staff and self employed keep their full rights after Brexit?  Will any new recruits after Brexit need visas? Will the UK government impose sectoral quotas or salary thresholds?   Will British citizens now in EU27 still be able work in EU27? Or only tied to their current country and/or current job?  And in future will British citizens still be able to go to EU27 to work: (Bowie’s Berlin days a thing of the past?).  Architects, animation studios, museums, heritage: you name it, the UK workforce is diverse (one of its strengths).  Not forgetting those academics in cultural subjects in universities. What will EU27ers in the UK feel as they show their pre-Brexit or post Brexit ID cards?  Will the rise in xenophobia die down?

Carnets and permissions?   Will British based touring companies need a country by country carnet as they do for China?  Touring orchestras, rock bands, early music groups, Adele, Rolling Stones, djs, theatre companies , exhibitions etc all affected.  Will touring artists from EU27 also need carnets to bring their equipment etc. into the UK; effect on festivals? A view>

Qualifications: will UK qualifications still be accepted?   A version of the qualifications issue is that EU committees, panels, “Open Methods of Coordination” (which discuss a wide range of policies)  will no longer have British members.  Will I be the last member and chair of the Selection Panel for European Capitals of Culture as membership is limited to nationals of EU member states?

Exports.  Over 40% of the creative industries exports go to EU27.  Free trade continues?  Or tariffs (and WTO does not have any useful categories to use and Free Trade Agreements normally have little to say on services).  Will British architects still be able to compete for commissions (Foster’s Reichstag?).  Will the UK still benefit from the Digital Single Market?  Will British TV and films still be classed as European in those countries with European quotas?   And of course the mirror image of exports are imports.  The cultural sector has supply chains as well as Nissan!  Import duties on items from EU27?

Intellectual Property Rights.  A minefield.  A loss of engagement with developments in the fast moving field?.  A view>

More law: Artists Resale Rights, Export Licencing Regime, restitution claims, the art market   A view> and another>

And then there are the broader issues, the consequences of a Brexit.

The £ and exchange rates.   A lower £ sterling affects many areas of the cultural sector. A view>

Weaker public finances.  Will these put a further strain on public sector budgets at national and local levels?

I don’t expect this list is exhaustive. Please add!

 

The cultural and creative sectors contribution to the EU is fundamentally important

“We would see funds redistributed from the Common Agricultural Policy towards other programmes such as Creative Europe, which offers growth potential”

The UK Parliament’s committee looking at the European Commission’s proposed budget from 2014-20 has given  resounding support to the Creative Europe proposals. It asks the UK government to reconsider its position.  I’ve written about the committee’s previous meetings here (Ministers view); here (the sectors and EC view) and the preliminary verdict here.

The final report gives a clear overview of the Commissions’  total spending plans, far clearer than anything I can find on the Commissions’ own Europa website: openness, transparency and public accountability are not Commission virtues).

” The cultural and creative sectors contribution to the EU is fundamentally important. We heard compelling evidence that the increased budget proposed by the Commission would stimulate job creation and growth in line with the Europe 2020 strategy. In the context of domestic funding cuts, and the organisations obvious capacity for attracting EU funding, we call for the Government to support a proportionately larger budget allocation to this area, which represents only a very small proportion of the total MFF.

We also call on the Government to reconsider its position regarding the proposed financial facility. Businesses in the cultural and creative sectors often experience greater difficulty in attracting investment than their counterparts in other sectors. The Commission’s proposed financial facility could offer an important bridging mechanism between these sectors and private-sector investment.

We also call on the Government to reconsider its position regarding the proposed financial facility. Businesses in the cultural and creative sectors often experience greater difficulty in attracting investment than their counterparts in other sectors. The Commission’s proposed financial facility could offer an important bridging mechanism between these sectors and private-sector investment.

A welcome call.  It is interesting to see that the support for Creative Europe does not match the views of many of its supporters.  No mention of forging a closer European citizenship and no mention of artistic and creative benefit.  Pragmatic and to the point, perhaps a better reflection of the role of EC funding.

The report also supports increased educational spending and improved EC communications to citizens.

Will the UK government make these arguments at the EU Education and Culture meeting on 10-11 May?

Who knows?

 

 

Hollande’s cultural challenge

If Francois Hollande wins the French presidency then a major cultural challenge has been set for him.  With nearly one in five French voters expressing a preference for a racist party, and the (hopefully) outgoing president making statements which are not out of place at a le Pen rally,  France really has to get to grips with its attitude to racism.

Something is clearly wrong.  It will mean changes to current practices, in employment, in all sectors.  Current policies have clearly failed.      A President Hollande will need to mobilise a changed cultural sector to help in the anti-racism programme.  Changed?  Yes.    How open is the cultural sector, from museums, theatres, orchestras, to independent arts organisations and groups to a multi-cultural programme.   Audience extension and development.  An interesting take on the Musee de Quai Branly for example is here.  Personally I loved the architecture but really disliked the approach taken in the exhibits, as did the author.

The report in Germany on the future of museums makes an interesting point.  Ignore the headline grabbing comment about closing half the museums and focus on the comment about the need to engage closer with the tax paying public.

In addition, he argues, cultural institutions should be organised differently and [be given] more detailed targets, not only in regard to visitor numbers, but also guidelines about where visitors should come from and what age groups in particular should be attracted to the museums.

This is not only a domestic issue.  France’s soft power and cultural attraction is weakened with such a growing vote for the extreme right.   And if the right win in the second round?

 

 

Creative Europe: “We urge you to reconsider….”

They listened to the Minister (who said no).  They listened to the European Commission and the sector (who said yes).   And they asked the Minister to reconsider.

The UK’s House of Lords Committee scrutinising the Creative Europe proposal from the European Commission came out firmly in support.  Their letter to the Minister says….

” .. we received compelling evidence from the cultural and creative stakeholders…about the economic and social benefits provided by EU funds to UK organisations and to the cultural and creative sectors across the EU more broadly.  We also note that the Commission’s proposed increase constitutes only a fraction (0.002%) of the overall allocation  for the next MultiAnnual Financial Framework for the period 2012-14. In the context of the domestic funding cuts for this sector and taking account of UK organisations obvious capacity for attracting EU funding and notwithstanding the Government’s declared  negotiating stance of achieving a real terms freeze across the next MFF, we would urge the Government to review its approach to this funding proposal”.

 

They were also (politely) critical of the Ministers’ failure to attend meetings with other Culture Ministers.  I woonder what they would think if they read my article of the UK Culture Ministers failure to sign the Decalogue for Culture (leaving it to a Business Minister)

The Minister has ten days to reply.

Creative Europe strikes back

Creative Europe struck back yesterday at the House of Lords committee which is reviewing the European Commission’s proposed new culture programme.  Last week the UK’s minister for Culture, Ed Vaizey, said the UK government will oppose the planned 37% budget increase.   Yesterday Ann Branch (European Commission), Yvette Vaughan Jones (Visiting Arts and the UK’s Cultural Contact Point) and Agnieszka Moody (MEDIA Desk UK.) refuted Vaizeys’ objections.

Last week I said that the supporters of the Creative Europe programme need to offer hard facts rather than appeals to vague concepts of “Europeanness” if they are to convince politicians to support the increase in the EC’s culture budget. That is precisely the approach the three “witnesses” took yesterday.

To every question they replied with hard facts and practical explanations of the impact the EC Culture programme has.  Benefits to UK?.. of course; benefits to arts and creative professionals?..here’s an example, benefits to wider society?.. lets look a this example,  supporting jobs and growth?.. look at the numbers and the multipliers, is there European added value?.. see through these examples, Will the increase benefit the UK arts sector and society?  here’s another example.  On the critical issue of the proposed loan guarantee facility the Ann Branch gave compelling evidence of support from the European Investment Bank.

Watch the session here on Parliament TV.

Vaizey was clearly embarrassed last week when he said there had only been 6 responses to the UK consultation exercise run by his ministry.   He extended the deadline to 26 March.  The CCP, and this blog, alerted the arts sector.  There are no nearly 50 responses.  There are still a few days to get more responses.  Send them to DCMS.

The Committee were clearly impressed when the sheer scale of consultation across Europe was listed by the three witnesses.

And now?   My guess is that the Committee will support the increase in the programme, re-assure the Minister that EU funding is not replacing reduced UK arts funding and will benefit the UK sectors.   The big question is less over the Creative Europe budget itself.   I suspect that over the next 12 months as heads of government start to become involved over the EC budget as a whole .. and I guess that the EC will not get away with any real increases but have a static budget (except for inflation) then the inter-programme battles will resume within the Commission.  The issue then is whether the proposed culture programme benefits Europe’s (not the sector) jobs and growth strategy more than other programmes run by the EU. We all have our favourite programme to hate.  Naturally the Common Agricultural Programme tops my listing!

“Creative Europe”: yes but no more money says UK Minister

The UK will oppose the proposed 37% increase in the EU’s culture budget.  The European Commission has put forward a new programme for 2014-2020 under the banner “Creative Europe” to cover culture, media and a “cross sectoral financing facility”.  Ed Vaizey, the UK’s Minister for Culture, Communication and the Creative Industries told a Parliamentary Committee on 15 March that the UK does not support any increase in the EC’s budget, in these days of austerity. Consequently it opposes the increase in the culture budget.  (The Minister’s uncorrected comments to the Committee are here).

Vaizey gave strong support to the objectives of the culture programme and to the support to the media and film industries.  In particular he supported the translation programme saying the publishing industry was often overlooked.

Vaizey said: “On one level it is unusual for me as a Culture Minister to oppose a proposed substantial increase in a budget designed to support the cultural and creative industries, but I do oppose it because I very much sign up to the Government’s position that in times of great economic austerity, when the European Union should be focused on growth, looking hard at its budget and the money it spends and reducing it if possible, it would be terribly wrong for me, given my own particular passion, to say, “That’s all very well but we’ll take the increase in the culture programme“.

 

He singled out the proposed financial facility  for strong opposition .  The Commission have proposed this loan guarantee facility as small  businesses in the creative industries have difficulty attracting commercial loans from the financial sector in many countries.  Vaizey disputed this. His objections rested on the risk that starting such a loan guarantee system ran the risk of other sectors seeking similar preferential treatment, and that the better way  forward was to educate the investors.  His own ministry has recently launched a support scheme based around tax relief.

Two surprises came from the hearing.  Vaizey does not know or meet his ministerial counterparts across the EU. He did recall a short meeting with the French Culture Minister at the Venice Architectural Biennale.    Secondly his Ministry  has only received 6 responses to its consultation on Creative Europe.  This clearly concerned the Minister.  So much so that the Cultural Contact Point wrote out that evening saying the deadline for comments has been extended to 26 March.

The UK’s view is not surprising. The Prime Minister has made it clear that he will not let the EC claim an exception to the general cuts in government spending that we are seeing across the EU.  The EC’s culture budget increase is a casualty of this policy.   The messages for the “We are More”  campaigners are clear:

* the need to argue why culture is more effective than other areas of EC spend (presumably the Common Agriculture Policy as the largest element of the EU’s budget)

* why the local guarantee facility will help small and medium companies in the creative and cultural sector.

* and, in the UK, to get your views to DCMS and Vaizey before 26 March.

General pleas to a conceptual idea of a “Europeanness” will fall I suspect fall on deaf ears (the point of another article soon).  As governments cut their own budgets only hard evidence will sway them now.