Finance Minister Olaf Scholz has been talking about the so-called special fund for cultural events since last fall. For a long time, it has remained with the words. The start of the aid program was so urgently needed in order to give event venues and cultural institutions a certain degree of planning security. But the federal government did not want to provide this, and so for the time being the “federal emergency brake” was used instead of a special fund. Since May 26, however, it has finally been decided that the special fund for cultural events will start on July 1. It is worth 2.5 billion euros. Olaf Scholz boasts of the “largest cultural funding program since the founding of the federal government.”
The special fund for cultural events is intended to enable events in pandemic mode that would otherwise not be profitable because of expensive hygiene concepts and considerably fewer tickets sold. This is possibly also the reason for the long waiting period: if no events can take place, the fund comes to nothing. The long-awaited start can therefore perhaps be read as a good sign that the federal government now finally considers a long-term opening of the cultural sector to be possible. We explain everything important about the federal government’s aid program.
Economic aid for smaller events
The special fund for cultural events has two building blocks. The first works similarly to the subprogram for the live sector of NEUSTART KULTUR, which we reported on recently. It is the larger part of the fund that is intended to benefit smaller events. For now, this means events up to a maximum of 500 guests. As of August 1, this number will be increased to a maximum of 2,000 guests.
The economic aid of the special fund always takes effect when the event may take place, but the full capacity of the premises may not be used. The fund pays for the tickets that were not allowed to be sold due to the Corona provision. Up to 100% is paid here per ticket. However, limited to a maximum of 500 tickets or, as of August 1, to a maximum of 1,000 tickets. In the case of particularly strict hygiene regulations, where occupancy rates are only possible up to a maximum of 25%, there is the possibility of receiving double the ticket price from the fund.
Failure coverage for larger events
The second component relates to large events with 2,000 or more guests that require long planning phases. These events are to be given more planning security by means of a contingency cover. The contingency cover takes effect if the event does not take place due to corona or even has to be postponed or canceled completely. The payments from the fund are intended to reduce the financial risk of the organizers. The subsidies function like an insurance, which is currently not offered by insurance companies. The fund covers a maximum of 80% of the cancellation costs or a maximum of 8 million euros per event.
In both cases, the realization of the special fund lies with the countries in which the event has taken place or will take place. There are different regulations here. The economic aid for smaller events must be applied for afterwards at the respective state cultural authority. Larger events that want to register for the loss coverage must do so on the IT platform of the federal states. A cost calculation and hygiene concept must also be submitted.
The special fund is intended for the following cultural events: Theater, musical, dance, puppet, figure and object theater, vaudeville, artistic circus without animal performances, cabaret, concerts including live music with a curated music program, screenings in the fields of film and media, exhibitions (visual arts, natural and cultural history exhibitions, exhibitions of commemorative culture), readings, festivals of all artistic disciplines and cross-disciplinary cultural events.
The two requirements for applying for funding are, first, that an admission fee is charged for the event; and second, that fewer tickets can be sold than the space has capacity for, due to corona. The legal form of the organizers is irrelevant. Public cultural institutions can also apply for support.
Criticism from the German Cultural Council
The German Cultural Council is relieved about the launch of the special fund. But there is also criticism. For example, Olaf Zimmerman, executive director of the German Cultural Council, does not see the necessary planning security for smaller events as they can only apply for the funding after the events, according to the “Politischer Wochenreport”. Here, Zimmermann calls for a legally secure decision issued in advance that provides financial security.
Zimmermann also sees the special fund as a disadvantage for the creative industries. This is because private-sector organizers would have to cover all their costs with the ticket revenues, which will hardly be possible with the current limit of 1,000 tickets in the fund for larger events, let alone compensate for the losses from the last 15 months. The term until the end of 2021 is also too short, he said, as it is still not clear whether events can be held again next year at full capacity.
The special fund for cultural events comes late. But it is an important signal to the industry and gives hope for a summer full of events.
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