GOVERNMENT APPROVES BUDGET INCREASE FOR Euro 2008

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Avoiding a possible funding crisis, Switzerland’s lower house of parliament agreed to provide up to EUR 52.3 million in public funds toward the 2008 UEFA European Championships, much to the relief of tournament organizers.

The tournament is being co-hosted by neighboring Austria, but it’s the Swiss who have incurred more financial troubles, a consequence of rising security costs for the tournament. The government has now put aside EUR 40.9 million for security. In 2002, the government said it would only EUR 2.2 million would need to come from national funds.

“I acknowledge that the costs were originally set too low,” sports minister
Samuel Schmid told the house. “We are convinced however that this event gives Switzerland a unique chance to present itself at a global level at a price which will ultimately be seen as very reasonable.”

The country’s upper house must still approve the measures.

Local organisers claim Euro 2008 will more than make up for its costs by boosting regional and national economies. A 2004 study by the Lucerne-based Institute for Tourism Economics estimated that the event would generate increased turnover of between EUR 300 million and EUR 365 million.