Features

BRUSSELS, Belgium — A bank better known for financing roads and railways said Tuesday it is earmarking $445 million to help European media companies compete with Hollywood and Silicon Valley. 

The European Investment Bank, the financing arm of the European Union, will provide the money over three years via loans, credit lines and backing for venture capital funds. 

The first deal was signed Tuesday with a commitment to invest up to $14.7 million in the Finland-based Venture Fund for Creative Industries, which targets music, sports and new media companies across northern Europe. 

European leaders have long fumed about the largely one-way nature of trade with the United States in areas like movies, television and music, which many view as threat to Europe’s own cultural identity and diversity. 

EU countries run a $6 billion trade deficit in such goods with the United States each year, and the imbalance risks becoming even greater with the advent of digital technologies, said EU Commissioner Viviane Reding, who is responsible for culture and education. 

“Both for cultural and economic reasons, it is essential to provide adequate funds to European creators,” said bank president Philippe Maystadt. “It is crucial that Europe play its role in the audiovisual industry.” 

That industry is an $18.7 billion-a-year business in Europe, But despite a tradition of government subsidies, it has long complained it lacks the funds to compete with Hollywood or the high-tech whizzes of Silicon Valley. 

Industry groups welcomed the EU initiative as recognition of the importance of such media in the new economy and said it could help stimulate Europe’s creative juices by attracting more private capital as well. 

Europe’s star directors like Wolfgang Petersen of “A Perfect Storm” and Roland Emmerich – of “Godzilla” and “Independence Day” – might not have to head for Hollywood to produce their next big-budget extravaganza, groups said. 

“Our ability to fund more ambitious projects is crucial if Europe is to keep its homegrown talents,” said Philippe Kern, secretary general of the European Film Companies Alliance. 

The European Union wants to support small- and medium-sized film production companies with low-cost loans, but larger credit lines will also be available for bigger players to build high-tech studios and digital installations. 

The venture capital fund is budgeted to reach $44.5 million and will provide seed money for companies developing Internet businesses, music, television programs and films.