Germany may not have a solo effort vying for a coveted Palm d'Or award this year, but there is still plenty for the country's film industry to celebrate in Cannes, observers say.

Last year, the German-Austrian co-production “The White Ribbon” (Das Weisse Band) took home the Palm d'Or. This year, two German movies; "Life, Above All," and "Unter dir die Stadt" ("The City Below"), are vying for the titles in one of the parallel competitions, "Un Certain Regard." That series gathers smaller, more individualistic films, mostly from younger filmmakers.

Well-recieved effort

On Tuesday, a gut-wrenching movie by award-winning South African-German director Oliver Schmitz ,"Life, Above All," got a 10-minute standing ovation when it was premiered in the Certain Regard selection.

The film looks at women's issues and AIDS through the eyes of South African Children. Based on the novel "Chanda's Secret" by Allan Stratton, it tells the story of a 12-year-old girl who must combat prejudice, superstition and judgement in her village after her younger sister dies. Despite the suffering around her, she shows incredible spirit and will.

Cooperative projects abound

"It isn't an AIDS movie," Schmitz told AFP news service. "It's a very moving drama about a mother-daughter relationship tested by taboo, illness and lies."

Schmitz grew up in South Africa where he was the son of German emigrants; he currently lives in Berlin. "Life, Above All" is a co-production between Germany and South Africa.

According to German Culture Minister Bernd Neumann, "the barometer of success of German films lies in the co-operations." That was his comment to dpa news agency, on the subject of the lack of purely German film in competition this year.

Like Schmitz's German-South African co-production, Germany has its hand in one film in the main competition: it co-produced one of the bleak Eastern European films on show this year, the ironically titled "My Joy" by Ukrainian director Sergei Loznitsa.

Overall German contribution is key

Germany's overall contribution to the film world is more important than whether or not German films compete in the main categories, Neumann said.

The second German film in the "Certain Regard" series picks up a topic that is writ large in this year's festival on many levels: the interplay between finance and society.

Like Oliver Stone's much awaited Cannes contribution, "Wall Street: Money Never Sleeps" (a sequel to his hit cult-film "Wall Street" from 1987,) Germany has also produced a film that plays in the banking milieu.

“The City Below” by Christoph Hochhaeusler uses the financial crisis as a backdrop for a love triangle involving money, power and dependence. The film, which examines the concept of trust, is set to be screened on Saturday.

Rebound for the industry in sight?

The Cannes Film Festival runs until May 23, and despite the heavy emphasis on stars, glitz and glamour, it is generally known as the year's most important date on the business side of film. Its where distributors and filmmakers meet to decide which films get picked up and actually seen in theatres, and which do not.

Midway through the festival, distributors were cautiously optimistic that the tough times that hit around the financial crisis of 2008 were heading to an end. In that year, easy money from private equity led to buyers overpaying for movies, so suppliers created a glut of titles. Some other issues that clouded the industry outlook were lower DVD and television revenues, lack of government funds for film production, and jittery financial markets.

Now, a strong global box office and feelings that players are back to basics in the independent film business are raising spirits, observers said. But in general, any improvement will depend on the global economy remaining stable.

“There's a feeling better times are ahead, but everyone is cautious -- very, very cautious," Michael Barker, co-chief of Sony Pictures Classics, the specialty film label of major studio Sony Pictures Entertainment, told Reuters.

A total of 19 films will compete for the Palme d'Or at the 12-day event. The star-studded jury includes Tim Burton, Kate Beckinsale, and Benicio del Toro.

nwh/AFP/dpa/Reuters
Editor: Jennifer Abramsohn