Legislative proposal to Parliament: Event Guarantee reduces organisers’ financial risk
Event guarantee aims to reduce the financial risk of organising events. The guarantee is a payment commitment given to event organisers in advance for the costs declared by them. If the event were cancelled or its size restricted by law or order of an authority, compensation would be paid for the costs incurred.
The Government submitted its legislative proposal to Parliament on 6 May 2021. Companies would apply for the compensation at the State Treasury. Ppplications would be accepted in June after the Parliament has considered the proposal and the President of the Republic has approved it. The Act is scheduled to enter into force on 1 June 2021.
“Operators in the cultural and event sectors have been in a difficult situation for a long time and we want to support them. At the same time, we want to offer people the opportunity to participate in events. I hope that the event guarantee will encourage organisers to arrange events, even though the coronavirus epidemic continues. The guarantee can also help organisers who seek external funding for their event,” says Minister of Economic Affairs Mika Lintilä.
Event guarantee to apply to established organisers
The State Treasury would grant the event guarantee to event organisers. The guarantee would apply to public events of at least 200 people that take place between 1 June and 30 November 2021.
The event guarantee would apply to established, professional organisers of public events. The organisers must have a Business ID and a permanent organisation and their turnover must have been more than EUR 150,000 in 2019. Typically, established event organisers have hired staff, but sole entrepreneurs could also apply for event guarantee.
The event guarantee would apply to, for example, art and cultural festivals, concerts and exhibitions, sports events, music festivals, fairs and similar events that are not organised regularly as part of year-round activities.
Event guarantee is based on pre-announced and actual costs
In its application, the event organiser should include the planned time, place and duration of the event, the estimated costs and any subcontractors of the event.
The organiser would apply for the event guarantee, but the compensation for cancelled events would also be paid to the subcontracts included in the application.
If the event is cancelled completely by law or by order of an authority, 85% of the costs will be reimbursed. Only actual costs announced in advance could be compensated. The event is considered cancelled if a law or order of an authority restricting such events is in force no more than 60 days before the event.
In case the size of the event is restricted by law or order of an authority to allow no more than 85% of the initially planned participants, the event guarantee could compensate for the costs in part.
Aid granted earlier under the same temporary State aid rules of the European Commission will be taken into account when granting the guarantee. The total amount of coronavirus-related aid, such as business cost support, cannot exceed EUR 1.8 million.
Ministry of Education and Culture also grants event support
The event guarantee would not be granted for events organised regularly throughout the year. Such events include weekly performances, concerts and plays, or sports events organised as a series.
The Ministry of Education and Culture will organise separate application rounds for these events. In addition, events organised as activities of general interest in arts, culture, sports and spiritual life will be supported primarily by grants from the administrative branch of the Ministry of Education and Culture.
The event guarantee also would not apply to small-scale events organised as part of recreational activities or an association’s fundraising.
The Government has reserved EUR 80 million for the event guarantee and a total of about EUR 230 million for the support package for the cultural, arts, sports and event sectors. The proposal was circulated for comments and evaluated by the Legislative Evaluation Council in March-April. The comments received were taken into account in the preparation.
Jenny Hasu, Special Adviser to the Minister of Economic Affairs, tel. +358 29 504 7213
Mikko Huuskonen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 3732 (event guarantee)
Riitta Kaivosoja, Director-General, Ministry of Education and Culture, tel. +358 29 533 0129 (support by the Ministry of Education and Culture)