Czech President Vaclav Klaus has signed into law a 2007 budget amendment which adds $4.8m (CZK 100m) to state aid for Czech filmmakers, raising the total value of the State Fund for the Support and Development of Czech Cinematography to $7.6m for next year.

The state fund provides money for the development, production, distribution and promotion of Czech films.

Film-makers hope the increase will help them participate more equally with foreign partners in co-productions.

The Czech Republic still lacks a stable government since parliamentary elections in June resulted in a left-right stalemate. A new cabinet being assembled by Prime Minister Mirek Topolanek may face a vote of confidence as early as January.

Topolanek has previously promised to create a comprehensive film law to address the needs of filmmakers in the Czech Republic, and with coalition partners plans an increase in subsidies to the industry.

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