PUBLIC SPENDING ON CULTURE IN EUROPE

Transcription

1 PUBLIC SPENDING ON CULTURE IN EUROPE Brussels, 21 February 2018 Requested by the Committee on Culture and Education Coordinated by Pere Almeda, Albert Sagarra and Marc Tataret.

2 TABLE OF CONTENTS 1.Introduction 2.Methodology 3.Macroeconomic introduction 4.Contents Block I: Public spending on culture in European countries 4.1 Evolution of public spending on culture in European countries Public spending on culture in European countries in relation to their public exependiture 4.3 Public spending on culture in European countries in relation to their GDP 4.4 Household spending on culture Evolution of public spending on culture by level of government Contents Block II: UE spending on culture 5.1 UE spending on culture by programmes 6. Proposals for the debate

3 HYPOTHESIS AND STARTING POINT Since the economic crisis there is a growing cultural divergence between European countries due to impact of cuts in public budgets, public deficit containment measures and the implementation of austerity policies. There is a need to define and implement new policies at European level to support culture and the recovery of the process of convergence that had started decades before. Problem: There have been no recent studies on the evolution of public spending on culture in Europe since the start of the crisis.

4 2. METHODOLOGY Geographical Area Countries South Spain, Greece, Portugal and Italy Centre Germany, France, Belgium and the Netherlands East North Slovakia, Slovenia, Poland and Hungary Denmark, Finland and Sweden Main data sources: Tools for the analysis: - Eurostat - World Bank Database - European Commission -Social Progress Imperative - Relative evolution of the different variables in the period. - Convergence-divergence (in respect with the EU28 average) of the different variables in the period.

5 3. MACROECONOMIC INTRODUCTION Public expenditure has followed a different path than GDP. It has increased in 13 out of 15 countries. One reason could be the counter cyclical policies made by the governments. The setback was experienced only in the southern countries, Greece and Portugal. If we analyse public expenditure per capita, the setback would be for Greece and Italy.

6 TABLE 1. Change of public expenditure and population ( ) of the 15 states of the sample constant prices Absolute Varation Spain Italy Greece Portugal France Germany Netherlands Belgium Slovenia Slovakia Hungary Poland Denmark Sweden Finland Public Expenditure , , ,32 163, , , , ,07 904, , , , , , , Population Public Expenditure per capita ,00 143, ,00 345, ,00 706, ,00 99, , , , , , , , , ,00 290, , , ,00 376, ,00 771, , , , , , ,67 Source: Own elaboration from Eurostat and World Bank Database data Relative Variation Public Expenditure 4,47% 0,69% -10,37% -0,24% 14,45% 13,38% 10,93% 22,23% 6,69% 49,93% 6,43% 25,33% 13,19% 13,56% 16,89% Population 2,70% 3,92% -2,06% -1,75% 4,07% -0,70% 3,41% 6,10% 2,25% 0,92% -2,12% -0,35% 4,07% 7,12% 3,61% Public Expenditure per capita 1,73% -3,11% -8,48% 1,54% 9,97% 14,19% 7,28% 15,20% 4,34% 48,57% 8,73% 25,78% 8,76% 6,02% 12,82%

7 4. PUBLIC SPENDING ON CULTURE IN EUROPEAN COUNTRIES Once the existing data was compiled it confirmed that the economic crisis in Europe has had a direct effect on public spending on culture in the different EU countries The distance between the level of spending on culture between the Nordic and Central European countries and the peripheral countries of Southern and Eastern Europe reached 128% points between the two extremes in 2015 and opened an enormous breach and disparity that hinders a desirable process of convergence.

8 Figure 1 - Evolution of public spending on culture per capita ( ) in relation to the European average - in constant euros SOUTH Source: Own elaboration from Eurostat data CENTRE EAST NORTH EU 28 SAMPLE 15

9 Figure 2 - Evolution of public spending on culture per capita indexed for 2007 by European geographical area in constant euros (2005 deflator) SOUTH Source: Own elaboration from Eurostat data 2010 CENTRE 2011 EAST NORTH 2012 EU SAMPLE

10 Table 2. Changes in cultural spending per capita ( ) - constant euros Absolute Variation Relative Variation Greece 28,50 15,05-13,44-47,17% Portugal 57,02 34,18-22,85-40,07% Italy 102,13 89,94-12,20-11,94% Spain 144,51 92,86-51,65-35,74% France 202,93 211,75 8,82 4,35% Germany 111,97 123,21 11,24 10,04% Netherlands 173,44 165,82 7,62-4,39% Belgium 145,80 148,44 2,64 1,81% Slovenia 119,30 114,23 5,06-4,24% Slovakia 38,62 56,66 18,04 46,71% Hungary 55,87 83,40 27,53 49,28% - Poland 55,77 60,05 4,27 7,66% Denmark 247,05 271,59 24,54 9,93% Sweden 208,52 200,01 8,51-4,08% 6,93 4,40% - Finland 157,53 164,46 Sample ,30 123,30-3,00-2,38% EU ,93 113,26-5,68-4,77% Source: Own elaboration from Eurostat data

11 The southern countries experienced a drastic cut in cultural public expenditure. Between 2007 and 2014 it fell by around 30 percentage points and interrupted its gradual evolution towards convergence. The most noticeable cases are Greece, Portugal and Spain, where cultural public expenditure per capita fell by fell 47 points, 40 points and 36 points respectively. Cultural public expenditure per capita has risen by more than 40 points in Hungary and Slovakia, and had a minor decline in the Netherlands, Slovenia and Sweden.

12 4.2 Public spending on culture in European countries in relation to their total public expenditure There is a divergence process between the southern states and the rest of European countries. Data evidence indicates that there was a cultural boom in Spain before the crisis. Eastern countries have invested between 44 and 60 points more than the European average during the economic crisis. However, Nordic and Central European countries have a similar path than the European average.

13 Figure 3. Evolution of the cultural public expenditure in relation with their public expenditure, indexed (EU average =100) SOUTH 2009 CENTRE 2010 EAST NORTH 2011 EU SAMPLE 15 Data was extended to 2005 as an evidence to determine if there was a supposed cultural boom in the Southern countries. It seems that there was it in Spain, but not in the rest. * Source: Own elaboration from Eurostat data 13

14 Figure 4. Evolution of the cultural public expenditure in relation with their public expenditure for 2005 * by European geographical area in constant euros (2005 deflator) SOUTH 2009 CENTRE 2010 EAST NORTH 2011 EU SAMPLE 15 * Data was extended to 2005 as an evidence to determine if there was a supposed cultural boom in the Southern countries. It seems that there was it in Spain, but not in the rest. Source: Own elaboration from Eurostat data 14

15 In order to see if the decrease of the rest of budgets was similar we have analyzed the rest of the budgets for all the countries, paying special attention to the southern countries. In general, the most important budget reduction was in Defence (-15%). On the other side, Health was the unique budget that increased during de crisis (+4%). In southern countries, cultural budget decreased 30% at that time.

16 Figure 5. Evolution of Education, Public order and safety, health and cultural services in relation to total public expenditure (indexed to 2005) Public Order and Safety Source: Own elaboration from Eurostat data 2010 Health 2011 Cultural Services 2012 Education

17 Figure 6. Evolution of Defence, Education, Public ordrer and safety, healt and cultural services in relation to total public expenditure (indexed to 2005) for the southern cuntries Public Order and Safety Source: Own elaboration from Eurostat data 2010 Health 2011 Cultural Services 2012 Education

18 4.3. Public spending on culture in European countries in relation to their GDP Figure 7 - Correlation between Public Cultural Expenditure per capita and GDP per capita, Source: Own elaboration from Eurostat data

19 4.4 Household spending on culture The level of household spending on culture remained more or less stable through this period. Household spending on culture managed to alleviate to some extent the drastic fall in public spending on culture in Southern Europe until 2011.

20 Figure 8. Evolution of household spending on culture indexed from SOUTH 2010 CENTRE Source: Own elaboration from Eurostat data 2011 EAST NORTH 2012 EU SAMPLE

21 4.5 Evolution of public spending on culture by level of government * Figure 9. Public spending on culture by central and local government level 70,00% 45,00% 68,00% 40,00% 66,00% 35,00% 64,00% 62,00% 30,00% 60,00% 25,00% 58,00% 20,00% 56,00% 15,00% 2007 South Center 2010 East 2011 North 2012 Sample 15 Source: Own elaboration from Eurostat data EU-28 54,00% 2007 South Center 2010 East 2011 North 2012 Sample EU-28 21

22 PART II EU SPENDING ON CULTURE

23 EUROPEAN PROGRAMMES SPENDING ON CULTURE The European programmes that support culture, the Cohesion Funds and the Creative Europe programme accounted for only 0.73% of the total European budget ( ), equivalent to 1.87 per year for culture for each EU citizen. EU spending on culture accounts only for 1.6% of the overall spending on culture of the European member states. This data demonstrates that the scarce Community resources allocated to cultural objectives.

24 Figure 10. European Programs spending on culture by geographical area Millions of South Centre East Structural and Cohesion Funds Expenditure Source: DG REGIO SFC2007 May and DG Regio Data for Research. North Creative Europe Expenditure Other EU 28 Total

25 Figure 11 Geographical allocation of European Structural Funds for culture ( ) 8% 34% 21% 1% 7% 29% SOUTH CENTRE EAST NORTH OTHER EU-28 EU cross-border cooperation

26 Creative Europe programme funds are linked to dynamism and cultural and relational capacity focus mostly on northern and central European countries, which highlights the differences derived from cultural disinvestment.

27 Figure 12- Creative Europe per capita 12,00 10,00 8,00 6,00 4,00 2,00 - SOUTH CENTRE EAST NORTH OTHER EU-28 TOTAL EU-28 SAMPLE 15

28 PROPOSALS FOR THE DEBATE Bearing in mind that EU spending on cultural programmes accounted for 0.73% of the European budget in the period and will account for 0.71% in the period , there are overwhelming arguments to promote a margin of improvement in the EU budget. A plausible and desirable objective could be to increase spending on culture in the global Community budget for the period up to 1% ( ).

29 Considering the debates about the future of the European budget, many voices call for an increase in the fiscal empowerment of the EU. In 2014 the Community budget accounted only for 2.12% of total European public spending. The overall rise in the budget could mean at least doubling the absolute values of the resources currently available and in this way be capable of intervening through new cultural programmes and directly favour cultural convergence.

30 Creation of new EU instruments to deal with the breach open Definition of a new cohesion funds aimed at countries and regions with less public contributions to culture. Greater commitment by each country means greater contribution of cohesion funds. In this respect, a new pact could be established with all EU states, similar to that of science and R&D, recommending the allocation to culture of a given percentage of GDP or of public budgets to strengthen the cultural sector.

31 Create funding lines (Junker Plan model) for cultural business projects aimed at strengthening and increasing the projects and creative industries and at creating an investment fund for entrepreneurs and start-ups in the field of creation. Issue a proposal to homogenise VAT on culture in all countries to avoid further penalising southern countries with extra charges for production and foreign distribution. Create a European sponsorship law to avoid tax competition and unequal funding opportunities at a time when companies are active in most countries. Define the cultural rights of the population with the objective of guaranteeing the access, presence (in the case of multicultural environments), preservation (in the case of minority cultures) and ownership in the construction of a Europe committed to diversity and equity.

32 Redefine the structural funds by allocating one part to recover and maintain artistic structures (i.e., creators and projects) rather than infrastructures and heritage. The EU institutions should promote an annual report about the cultural policies among the country members, which includes a comparative analysis of the public spending on culture with official data updated periodically. Reach agreements with southern and eastern countries on information and support structures to help creators obtain funds and participate in Creative Europe networks.