December 7, 2020

Germany Announces €2.5BN Event Cancellation Fund

The German federal government has announced a €2.5 billion cancellation fund to allow event organisers to plan for the second half of 2021 without the financial risk posed by a potential Covid outbreak.

Finance minister Olaf Scholz said that the federal government would like to reimburse all costs “which were made in optimistic expectation and cannot be realised due to corona restrictions” for events in the second half of 2021. Scholz says he is also working on a funding program to support cultural events that are financially impacted by capacity restrictions enforced due to coronavirus, as well as hybrid shows.

In October, the Austrian federal government announced a similar scheme to remove the risk for event organisers and allow them to carry on business as usual. Under the country’s €300m ‘protective umbrella’, the government pledged to bear the costs of shows that were organised during the restrictions (at the time, a limit of 1,000 people seated indoors or 1,500 outdoors) but were cancelled due to new rules.

The same went for any reduction in capacity limits, as well as costs such as hotel rooms, crew wages and event technology. Companies based in other countries but which organise events in Austria were also able to benefit from the funding.

Read the full article from IQ here.