An analysis by the consultancy firm EY recommends strengthening support for European culture in order to gradually move towards a global recovery. The sector has lost a third of its turnover in 2020. According to the EY study, European culture lost 31% of its turnover in 2020.
The so-called “non-essential” nature of culture should be put into perspective. The cultural economy is a powerful lever for exports for the European Union, with exports of cultural goods representing more than 28.1 billion euros in 2017,” the study says.
The analysis states that with revenues “estimated at €643 billion and added value generated of €253 billion in 2019, the cultural and creative industries (CCIs) accounted for 4.4% of EU GDP in terms of turnover”, . This figure is greater than that of telecommunications, high technology, the pharmaceutical industry or the automobile industry.
Helping culture, a “heavyweight in the European economy”, therefore appears to be one of the keys to initiating a global recovery, according to EY.
Culture needs to be rooted in the economy
The cultural and creative industries must be taken into account in a global economic recovery strategy, insists EY. Reinvesting in cultural industries is part of the solution
Stricken by the effects of the health crisis, this sector lost in 2020 in Europe “about 31% of its turnover”. Although “air transport is the sector most in danger, the CCIs have suffered greater losses in turnover than other key sectors of the European economy such as tourism and the automobile industry (-27% and -25% respectively)”, EY insists.
The performing arts (-90% between 2019 and 2020) and music (-76%) are the most affected, EY adds. And the picture that emerges for 2021 is just as bleak. The economic impact on culture will continue into 2021 with a fair degree of certainty. The cancellation of Glastonbury (a prestigious contemporary music festival in England) is a first extremely worrying signal, with the risk of a domino effect.
A retroplanning to maintain the festivals
Today, it seems imperative to define a strategy of deconfinement at the cultural level for the Union. Culture spots are less risky than other places that remained open. A study conducted in Barcelona showed that no infections could be traced back to a live concert where all audiences members had been previously tested.
The European Union must also play a regulatory role so as not to let the platforms impose a flat-rate remuneration on creators. Concerning taxes on platforms for the benefit of culture, countries alone cannot take this kind of decision if Europe does not agree.
At Sabetrend, we support stakeholders in the cultural sector, be it museums, music festivals, or cultural events in many forms. And we will support all the initiatives of the European Union to bolster culture, a sector that is fundamental to the economy and which also defines us as Europeans.
