The Impact of the Financial Crisis on the Performing Arts and Entertainment Sector in Europe

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The Impact of the Financial Crisis on the Performing Arts and Entertainment Sector in Europe The Impact of the Financial Crisis on the Performing Arts and Entertainment Sector in Europe: Some early thoughts and considerations from the member unions of FIA-FIM, drawing on their experience and the political outlook at national level. March 2009. Introduction: A very brief email questionnaire was sent to the European member unions of FIA and FIM in March 2009, asking them to answer the questions in as much or as little detail as possible. It was clear that little statistical data would be available, so the idea was rather for the union to share their experience and views regarding the situation in their country. The answers received are available below by Union. Questions: How has the current financial crisis impacted on your work, as regards: 1) Employment conditions and opportunities for performers and the ability of the union to work effectively? 2) Funding and subsidies (public funding to the cultural sector etc.)? 3) Third sources of funding (sponsorship from private sector, trusts, foundations etc.)? 4) Audiences and participation? SECTION I: ANSWERS FROM MEMBER UNIONS OF FIA: SDS, Hungary There is a deep cross-cutting social, economic and political crisis in Hungary at present, which it makes it difficult to predict what the situation will be like in the coming months. With no Prime Minister and no national budget at the present time, it is only possible to give a few indications as to the likely effects of the economic crisis. Employment conditions in the theatres are largely unchanged at present. Contracts for next season are currently being negotiated and for the present at least, there has been no greater fluctuation than is normal at the end of a season. The budget for the city of Budapest has been delayed and delayed and is now expected in April. The indications at present are that funding to theatres will be down about 10% across the board. It will vary from theatre to theatre, with cuts ranging from 4,5% to 12%. This is due to the economic crisis and will have a clear and definite impact. As regards the situation elsewhere in the country, problems with the government have delayed political decisions regarding economic planning. However, once political changes have taken place, major cuts are expected in particular in the area of pensions and social security. These promise to have a severe impact in the coming months. There was never much in the line of private sector backing of live performance in Hungary, but whatever small support there may have been in the past will certainly not continue in the present climate. The outlook on audience ratings is not promising either. Though attendance in the first quarter of 2009 has been average and steady, it looks as though there will be a clear fall off starting from April. SFA, France Les conditions et les opportunités d'emploi sont directement conditionnées par les points ci- dessous: que ce soit dans le secteur public ou le secteur privé, une diminution des ressources disponibles pour la production affectent bien évidemment l'emploi des artistes et des techniciens. Même quand un lien direct ne peut être établi entre la crise financière ou économique et l'activité d'un secteur donné, elle sert de prétexte à certains employeurs pour justifier une pression salariale extrême. Pour le syndicat, des salaires moindres des artistes signifient des cotisations (fonction des salaires) en baisse. Par ailleurs, nous remarquons un nombre croissant d'artistes-interprètes abandonnant leurs métiers, faute d'emploi et/ou faute de ressources suite à un durcissement des conditions d'accès à l'assurance chômage. La flexibilité s'accroit, la sécurité décroit. Dans le spectacle vivant, le désengagement de l'État et des collectivités territoriales en matière de culture a des conséquences évidentes sur les programmations des salles qui elles mêmes ont des conséquences sur l'emploi des artistes interprètes. La création artistique a été l'une des premières victimes du désengagement des pouvoirs publics dans le but de réduire le déficit budgétaire. Par ailleurs, la baisse des ressources issues de la redevance pour la copie privée, assise sur l'achat de supports d'enregistrement, conséquence de la baisse du pouvoir d'achat des ménages autant que de l'augmentation de la piraterie, affecte le montant des 25% de ces ressources consacrées à la production de spectacles, de certains disques et de courts métrages. En France, la décision du Président de la République de supprimer la publicité en soirée sur les chaines publiques a provoqué dès 2008 une chute dans le nombre de productions commandées, et ceci a été aggravé par la chute du marché publicitaire apparemment liée à la crise. Suite à la "crise" financière, on a pu noter qu'un certain nombre de sponsors privés ont réduit leurs aides à certains festivals, ce qui aura également des conséquences sur l'emploi des artistes cet été. Dans l'audiovisuel, la chute du marché publicitaire, liée apparemment à cette fameuse crise, a entrainé une baisse dans les budgets des productions de télévision, avec une conséquence directe sur les conditions de travail (réductions du nombre de jours de tournage, intensification du travail par jour) et les salaires (en baisse). Pour l'instant, il est trop tôt pour voir l'effet sur les audiences. Le cinéma pourtant semble pour l'instant se porter bien (comme pendant les années 30?)… ENL, Estonia All the freelancers have fewer opportunities to work in theatres. Conditions are the same. Our union ability to help them is the same as what it was. Funding and subsidies have decreased by about 20% . Third sources of funding have not very big influence in Estonia. As regards audiences and participation - at the moment(!) – there is no difference... FNV-Kiem, Netherlands For this year it won't make a difference for a lot of groups in the Netherlands. The subsidies were already arranged and are save for the moment. However. For next year there will be a couple of problems. One of the bigger sponsors, the VSB fund, is dependent on the market and they cut down their subsidies by half. So originally they gave about 31 million and now they only have around 16 million for next year. And they are very important to a lot of groups to complete their budget for their productions. The second big thing is that the CAO's (collective agreements) are already discussed and will be a lot more expensive for a lot of groups but their costs go up and their income's going down....So they have a lot less money to spend on productions. SAI, Italy Financial Crisis Effects in Artistic and Creative Sector in Italy The financial crisis effects involve all the production and services system, including our fields, that represent a wealth for our country and democracy, essential to the growth of knowledge and critical consciousness of our workers and citizens. The artistic and creative field is the most at risk. Actors, musicians, dancers, authors and writers don’t have any income support. To the economic crisis effects, that undermined the access to credit for the funding of material assets, the Government added cuts to the FUS (Fondo Unico per lo Spettacolo – Unique Fund for the Arts), to education and to publishing. Therefore, the local authorities had to drastically reduce the cultural production. The result is the increase of unemployment and the risk to lose important parts of our artistic, cultural and historic values. The Ministry for the Cultural Heritage, instead of safeguarding the interests and the future of this sector, endorses its cuts. On the contrary, in other European countries, even in a recessive economic stage, the concerning Ministries encourage strategic funds for the cultural production, for education and for “innovation&research”. In Italy, the allocations for the cultural production are around 0.3% (of Pil – Prodotto interno lordo – Gross Domestic Product), against 1.5% in France, 1.4% in Germany, 1% in Greece, and so on. Sector Rates FUS Rates 2009 FUS 2009 FUS 2009 2008 without pre- allocation allocation in included € 20 favour of milions in opera- favour of symphonic opera- foundations symphonic foundations Opera Foundations 46,6952 47,5000 179.566.815,95 199.566.815,95 Music Activities 13,7416 13,7416 51.948.112,80 51.948.112,80 Dance Activities 2,1008 2,2500 8.505.796,55 8.505.796,55 Theatre and Prose 16,2722 16,2722 61.514.676,68 61.514.676,68 Activities Circus and 1,4888 1,5262 5.769.576,31 5.769.576,31 Entertainment Activities Film Activities 19,5000 18,5000 69.936.549,37 69.936.549,37 National Council for Entertainment Entertainment 0,1450 0,1800 680.463,72 680.463,72 Observatory Minister’s Integrative Fund 0,0114 B.N.L. (Theatre and Music) Func. Expenses 0,0450 0,0300 113.410,62 113.410,62 Committee Comm. Totale 100,0000 100,0000 378.035.402,00 398.035.402,00 Government has also cut other € 60 milions fundings extra-FUS. With such assets, the Italian Government should support: 14 Foundations 075 Music Activities 135 Dance Activities 422 Prose Activities 72 Circus 56 Travelling Theatres 1173 Film Initiatives We are facing an Executive that considers the culture not an investment but a superfluous expense. We cannot provide a number assessment about the impact of the crisis, yet, but we noticed a significant decrease of theatre and concert season and repeats, a long wait to find a placing in the artistic field, a decrease of what concerns the demand of labour (wardrobe assistants, technicians, and so on) and a significant falling-off of public at the live-performances.
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