This chapter delves into the transformative role of public film funds in shaping the European co-production landscape. Evolving from protectors of national cinema to architects of cross-border collaboration, these funds now drive the development, production, and distribution of co-productions that sustain European cinema’s cultural and economic vitality. With over 250 funds collectively allocating more than €3 billion annually, their impact on the European audiovisual industry is profound. The chapter examines their role across three phases: development, production, and distribution. During the development phase, funds foster international collaborations, particularly through co-development initiatives, co-production markets, and development labs. The production phase sees funds democratizing co-productions through inter-fund agreements, solidarity schemesSolidarity schemes, and the promotion of financial co-productions, enabling minority co-producers to assume greater creative and financial risks. Despite these advancements, the distribution phase remains the most challenging, as funds struggle to adapt to the digital era and effectively reach diverse audiences. Utilizing policy ethnography, the chapter also explores how public film fund administrators act as gatekeepers, shaping policies that influence the European co-production field’s ideology, symbolic capital, and institutional infrastructure. It concludes with an evaluation of the successes and challenges in achieving balanced, culturally significant, and economically viable European co-productions.