From having worked extensively in it, the VFX industry, apart from being near to Hollywood in terms of time zone, is surely just a tax rebate competition. Which is actually very non-EU philosophy; member states cannot simply subsidise local industries from tax revenue - it is a single market, other members have to have equal access to your market as your local companies.

Of course there's plenty of ways around it. In the case of film production, if the script calls for the characters to be in a specific location - then it's now a cultural asset that the government can fund with rebates. The person writing the script is of course aware of this and the incentives available.