The European animation industry is tough, but vibrant and growing. In 1999, c. 840 hours of animation was produced in Europe with about 40% produced in France and c. 12% in Germany. This leaves nearly 400 hours being produced elsewhere in Europe. Much of the above 840 hours was produced in co-production of some kind or another and this trend is continuing.

As stated earlier, there is no set formula or template to offer up. I only wish there was, simply because it would make all of our lives and even the writing of this article a lot easier! The numerous co-productions on which we have worked, for example, Oi! Get Off Our Train! (ZDF, BBC, Miramax), Preston Pig (Varga/Link/ITV) and Lisa (Happy Life/Varga/RTL Klub), were all different in structure.

We are currently involved in three more European co-productions, all at varying stages. Of the three, one is based on an original idea developed by us, one is based on an original idea by our co-production partner and one is based on an idea jointly co-developed with another partner. In addition, we are in discussions on two further co-productions (one a European/U.S. collaboration) and in co-development on another two. It is highly probable that there will be little or no substantial grant or subsidy money involved in the final financing of any of these.

It is certain that we and our partners will provide deficit finance in some degree; that we will retain rights in return for this; that we will share net receipts from distribution in the "rest of world" and retain certain territories directly, dependent always, of course, on the deal we strike with a given distributor. If there is a U.K. terrestrial commission we will discount the contract with a bank or consider sale and leaseback if there is no direct cash flowing for production; if a French or German partner is involved we will benefit from subsidies. If not, we will allocate the production work according to who is best suited or has the capacity at the time. Somehow, it will come together and it will work both from a business and a creative viewpoint.

In other words, like most of our colleagues, associates and peers in Europe, we are currently working on, and will continue to work on, making a lot of patchwork "mini-skirts!"

Jan Sawkins, Varga Holdings' Group Managing Director, is a respected international financial and investment executive. Sawkins has an extensive career in international media and finance. Whilst serving with Robert Fleming, the London Merchant Bank, she helped launch TEAM plc, an innovative group of independent production and distribution companies. She later joined TEAM as Joint Managing Director, before forming her own successful consultancy firm. As Group Managing Director for Varga Holdings, Sawkins is responsible for the overall management of the Group, as well as collaborating with CEO Andras Erkel in the areas of strategic planning, contractual negotiations and investor relations.