Catalans Help Pay for Woody Allen 'Love Letter'

Many within Spain's film industry think the project is actually no bad thing for them either.

"The director might be American but everyone from the art director to the technicians is Spanish, so this is actually a Spanish film and will give our industry a huge boost," said Pedro Perez, president of FAPAE, the Spanish Association of Film Producers.

A co-production only needs a 10 percent contribution from a Spanish production company to be considered a Spanish film. "The Barcelona Project" is a 50-50 co-production between Allen and Spanish company Mediapro, so is more thoroughly 'Spanish'.

Perez argues it is inaccurate to portray Allen's project as a big Hollywood filmmaker cashing in on European subsidies intended to foster home-grown talent.

The lead characters are played by Spain's top movie stars, Penelope Cruz and Javier Bardem. They first appeared together in 1992 in the steamy "Jamon, Jamon".

Although the film's storyline is secret it is believed to be a love triangle -- with Cruz and Johansson vying for the same man.

Jaume Roures, executive producer with co-producer Mediapro, says the controversy stems from public misunderstanding that the money is a subsidy when it is actually a commercial investment.

"Barcelona and the rest of the country should be encouraging this kind of public investment which is normal in the United States," he said.

"This isn't about competing with American films, this is about showcasing Spain's production capability, our talented technical teams, so of course it's good for Spain's film industry."

Last year, Perez said, the production costs of all Spain's 150 films put together did not equal the budget of Hollywood's top blockbuster (Pirates of the Caribbean 3: At World's End). That needs to change.

"People say Europe can compete with Hollywood because our scripts are better, or our actors superior, but if we can't put more money into the production side, the reality is we can't compete. Co-productions like this are the future."

Marian Getino is one of many who are not convinced. She lives in the trendy Borne neighbourhood of Barcelona, also home to the Picasso Museum. While she was happy to see a 'little Hollywood' on her doorstep, she thinks it is unfair that Allen should be paid for filming there.

"For someone like Woody Allen, who has so many resources, to be given public money is ridiculous," she said. "And as for the film being an advertisement for Barcelona, this city is already famous, it's not like we're desperate to put it on the map."