The economic benefits of the European Football Championship, which will take place in the summer in Germany, will be too weak to support the host country’s economy, according to a study by the IW Institute published on Friday.
“The 2006 Soccer World Cup shows that major sporting events are not economic fireworks,” while the German economy, highly dependent on the industrial sector, is currently experiencing its fourth consecutive quarter of zero or negative growth, explains Michael Groemling, director of the IW. Koeln Institute for German Economics.
However, consumers will be able to buy new televisions or drink more beer during the championship, believes Michael Groemling.
Psychological impact
“But they will reduce other expenses: they will eat bratwürste instead of going to restaurants, they will watch television instead of going to the movies. Consumer spending will not increase, but will shift to other areas.”
The 10 cities that will host the matches could benefit from a slight economic recovery, insufficient to support Germany’s gross domestic product (GDP) in 2024, according to the IW study.
The stadiums will surely be modernized, but “no new infrastructure will be built, unlike the World Cup in South Africa, for example,” explains Michael Groemling.
As for the television rights, they will benefit the governing body of football in Europe (UEFA), a sports body based in Switzerland.
Not everything is so dark, because the psychological impact cannot be neglected. “A major sporting event can improve the sentiment and image of the host country.” This is a benefit that is all the more important since “direct investments are low,” concludes the expert.
Source: BFM TV
