A Summer’s Tale for Social Cohesion?

Major sporting events are often accompanied by discussions about whether they bring economic benefits to the host cities. The upcoming European Football Championship in Germany is no exception, as it has both supporters and critics. Nicolas Ziebarth, head of the Research Unit “Labour Markets and Social Insurance” at ZEW Mannheim and professor at the University of Mannheim, has commented on this matter:

“Hosting the European Football Championship is expected to cost German taxpayers around 650 million euros. This is a considerable amount that the federal government, the states and the cities will have to bear in times of tight budgets. In addition, a nine-figure sum will be spent on broadcasting important matches on public television. While there are supposed increases in revenue from sports tourism, more overnight stays, merchandise sales and temporary higher employment figures, economic studies unanimously conclude that these positive economic impulses from major events merely displace the usual tourism effects, resulting in no net effect on economic performance.

Nevertheless, the 2006 World Cup was a great experience not only for football fans. The impact of new stadiums, the massive image boost for Germany and the feel-good factor among the population contributed positively to social cohesion and community spirit. The 2006 World Cup also showed that seemingly irrelevant events, such as football results, can positively influence personal and societal perceptions of economic prospects. Another study on the 2010 World Cup in South Africa found that immigrants were more easily integrated and that crime rates fell by ten per cent for several months in sub-Saharan countries that participated in the tournament.

Particularly at a time when Germany’s economic decline is a widely discussed topic and the transformation of the economy is a cause for concern for many people, a collective event can help generate positive momentum throughout Germany and strengthen the sense of community.”