Rescue dialogue in the Treasury. Tailor-made program for the event industry promised.
Berlin, 13.10.20. The events industry associations and initiators of the #AlarmstufeRot alliance yesterday presented Federal Finance Minister Olaf Scholz with the dramatic situation in their industry and called for rapid relief measures. Over a million workers in the industry have had no income for seven months. There is no perspective for the future. Cultural organizers as well as the trade fair, congress and conference industry, the operators of venues and tens of thousands of service companies in the event sector, the self-employed and employees are affected.
Minister promises program
The industry representatives have explained in detail where the considerable bridging packages of the federal government are not tailor-made for the rescue of the companies in the event sector and what optimizations are necessary. “There is still room for improvement in some aid programmes, such as bridging aid, because they were not being used as heavily as feared. This allows tailor-made programs for the event industry, for example,” Minister of Finance Olaf Scholz promises.
Ministry examines proposals
In order to save the multi-layered events industry from the crisis, various special regulations are urgently needed. The association representatives submitted detailed proposals to the minister: Access for small and medium-sized companies must be opened up further. Up to 80-90 percent of proven costs customary in the market must be reimbursed. Entrepreneurs' own contributions must be recognized as eligible, especially to help small businesses. Event costs incurred due to reduced capacity due to distance regulations must be reimbursed, as must the losses incurred as a result. The existing credit programs must be adjusted, among other things by extending the repayment periods. Lost intermediary commissions — eg from artist agencies — must be recognized as fixed costs, as is already the case with travel agencies. The tax loss carryforward must be expanded and the application process made easier. In addition, organizers need a default fund for future pandemic-related event cancellations, since insurance companies no longer accept such risks.
The minister announced that the government was aware of the particular impact on the industry. His ministry will carefully examine the proposals submitted and their possible feasibility. He intends to hold follow-up talks with the industry at short notice.
Associations and entrepreneurs present the situation
Representatives of the event associations were Prof. Jens Michow, Federal Association of the Concert and Event Industry (BDKV), Patrick Arens, Federal Association of German Showmen and Market Merchants (BSM), Timo Feuerbach, European Association of Event Centers (EVVC), Jan Kalbfleisch, FAMAB Communications Association, Marcus Pohl, interest group for independent service providers in the event industry (ISDV), and Helge Leinemann, Association for Media and Event Technology (VPLT). The #AlarmstufeRot initiative was represented by the event entrepreneurs Sandra Beckmann, Christian Eichenberger and Christian Seidenstücker. They entered into the rescue dialogue with Federal Finance Minister Olaf Scholz, Parliamentary State Secretary Sarah Ryglewski, State Secretary Wolfgang Schmidt and Dr. Holger Fabig, head of the COVID-19 working group in the Federal Ministry of Finance.
Photo: Alexander Franz
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