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BERLIN (Reuters) – The economic benefits of the European Football Championship, which will take place in the summer in Germany, will be too weak to support the economy of the host country, according to a study by the IW Institute published on Friday.
“The 2006 Football World Cup shows that major sporting events are not economic fireworks” while the German economy, very 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.
Consumers could nevertheless buy new TVs or consume more beers during the championship, believes Michael Groemling.
“But they will cut back on other expenses: they will eat bratwürste rather than going to a restaurant, they will watch TV rather than go to the cinema. Consumer spending will not increase but will shift to other items” .
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The 10 cities that will host the matches could benefit from a slight economic rebound, too little to support Germany’s gross domestic product (GDP) in 2024, according to the IW study.
The stadiums will certainly 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 organization based in Switzerland.
Everything is not so dark, because the psychological impact cannot be neglected.
“A major sporting event can improve the feeling and image of the host country.” This is a gain that is all the more important as “direct investments are low”, concludes the expert.
(Reporting Rene Wagner and Maria Martinez; French version Corentin Chappron, edited by Kate Entringer)
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