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Atlantic Overseas Pictures and EuroCo Prods. have launched development of “Flower of the Fence,” a love story set against the backdrop of the Holocaust, with production set for the third quarter of 2007 in Hungary.

Richard Dreyfuss, Maia Morgenstern and Thomas Sangster will star.

AOP president Harris Salomon and Matt Salzberg are scripting based on the true-life story of Herman Rosenblat, who fell in love with a woman he met through the fences of Nazi concentration camps.

Project is using the new Hungarian tax credit and a financing plan from OTP Bank, along with investors in Hollywood. EuroCo president Gabor P. Koltai is also a producer and the son of Hungarian thesp Robert Koltai.

OTP veep Laszlo Wolf said the project will help attract to Hungary film production that previously had been going to other central and eastern European countries.

AOP and EuroCo are also developing a $30 million action film, “Hunyadi: The Sword of God,” centered on the 15th century general who protected Europe from invasion of Ottoman Turks.