German Department Of Commerce Pledges $610Bn Rescue Package For Businesses

The German government has pledged a €550 billion ($610 billion) cash injection for the country’s businesses suffering from the effects of the coronavirus. The country’s promoters association estimates the potential losses for the sector between March and May at €1.25 billion ($1.4 billion).

Apart from the money, which will be loaned from the state-owned KfW bank, the German government also promised to make rules around short-term compensation more flexible, grant extensions for tax payments, and ease regulations around credit lending for businesses, among other programs.

Monika Gründers, who’s responsible for culture and media in Germany’s current government, pledged not to let the creative industries down.

Most of Germany’s 16 states had banned events with more than 1,000 attendees at press time. The state of Bavaria declared the state of emergency today, March 16, not yet imposing curfews, but shutting down all retail apart from essential businesses.

The country’s promoters association BDKV, which represents some 450 promoters working in concerts, tours, festivals, theater, musical and comedy, as well as agencies provided Pollstar with its letter of response.

It estimates that between now and May, around 80,000 events generating a projected $1.4 billion in revenues, are affected by the political measures imposed in reaction to the Coronavirus.

It therefore proposed to add four more measures to the government’s rescue package:

1. Allowing promoters a 365-day period to reschedule an event before having to refund the ticket, which would massively help with promoters’ cash liquidity.

2. In case a rescheduling of the event isn’t possible, promoters should be able to offer ticket holders a voucher worth the original ticket price, instead of owing them a cash refund.

Again, this is supposed to help with promoters’ liquidity, while allowing customers to plan for another event. 

In any case, promoters should be granted a respite of six months from the day they’re met with a refund request, since the expected amount of cancelled shows won’t allow for a swifter response time, according to the BDKV.

3. Another rescue fund for the ancillary businesses needs to be created, as promoters won’t be able to compensate for those businesses’ current losses with future events

4. Last but not least, BDKV states that, so far, the government has only pledged its catalogue of measures. It will, however, take public ordinances to make them manifest.

As long as promoters aren’t obliged to cancel events because of regulatory action, they remain liable to pay artists and fans damages.

The promoters association point to other European countries like France, which has identified the live entertainment sector as one of three industries hit hardest by the virus and was planning support funds as well.

Denmark’s government has pledged to equalize losses from mandated event cancellations as well as extra costs from rescheduling. 

Italy has already allowed promoters a grace period of 365 days to reschedule events, up from the usual 60 days, without having to issue a new ticket.