Cultural and Creative Industries hold the key to rebuilding Europe’s economy
Cultural and creative industries (CCIs) since 2019:
- employed more than twice as many people as telecommunications and automotive industries combined (7,6 million)
- were growing faster than the EU average with a 2,6% annual growth rate
- represented 4.4% of EU GDP in terms of turnover
- are some of the worst affected by the COVID pandemic with a 31,2% reduction in turnover
- if properly empowered, they hold the key to rebuilding Europe’s economy
Cultural and creative industries (CCIs) are much more than just another sector to get out of the crisis, they are a significant part of Europe’ solution to the current situation and its economic and social consequences.
These are the results of the new study from EY, called Rebuilding Europe: the cultural and creative economy before and after COVID-19, that took place in 28 EU countries, in 10 sectors of the industry and captures the figures behind Europe’s thriving cultural and creative economy before the pandemic, and the staggering effects of venue and shop closures and health measures. It also lays out a series of recommendations to empower CCIs, so they can be one of the drivers to help boost and revamp the EU economy.
The study was prepared by Ernst & Young on behalf of the European Grouping of the 33 Collective Management Organizations for creators and composers, GESAC, of which AUTODIA is a member too.
2019: A THRIVING ECONOMY
In 2019, the CCIs represented 4.4% of EU GDP in terms of turnover, with annual revenues of €643 billion and a total added value of €253 billion. CCIs were also one of Europe’s leading job providers, employing more than 7.6 million people, more than eight times the telecommunications industry.
CCIs were growing faster (+2.6% per year since 2013) than the EU average (+2%) and represented a trade surplus of €8.6 billion in 2017 (the latest figures available) – underlining the EU’s status as a cultural powerhouse in the world economy. The creative economy also came out favourably in terms of technological innovation, gender diversity and employment of young people.
2020: THE SHARP FALL
When COVID-19 took hold, the study finds that CCIs were worse hit than the tourism industry and only marginally less than the air transport industry. CCIs as a whole experienced losses of over 30% of their turnover for 2020 - a cumulated loss of €199 billion - with music and performing art sectors experiencing 75% and 90 % losses respectively, €53 billion for visual arts, €26 billion for audiovisual, etc.
CULTURE: THE KEY TO REBUILD EUROPE
Considering CCIs’ key contribution to the overall economy, and its potential to lift the EU out of the crisis, the study concludes that the creative sector should be central to Europe’s recovery efforts and recommends a three-pronged approach: ‘finance, empower, leverage’. It recommends massive public financing and the promotion of private investment, a solid legal framework to create the conditions needed to revitalise the creative economy and safeguard its long-term growth, and leveraging the soft power of CCIs and individual creative talent to drive societal progress.
A UNIFIED SECTOR MEETS EUROPEAN COMMISSIONERS
Unprecedented times called for unprecedented measures. Never before has Europe’s creative economy experienced such economic devastation, the effects of which will be felt for the next decade. While the report itself features editorial messages from President of the European Parliament David Sassoli and European Commissioner Mariya Gabriel, its release has inspired a unified delegation that, at the initiative of GESAC, will meet high-level decision-makers on the day of the launch, including European Commission Executive Vice-President Dombrovskis, Vice-Presidents Schinas and Šuica, and Commissioners Breton, Gabriel, Gentiloni and Schmit. The delegation includes representatives from across the CCIs, led by cultural ambassador Jean-Michel Jarre.
Jean-Michel Jarre, electronic music pioneer says: “Culture has become a scarce resource in today’s Europe, and we are all suffering because of it. At the same time, Europeans are experiencing the truly profound value of art and its ability to bring us together. This study reflects that reality, it puts numbers to the suffering and offers clear instructions as to the solution. ”
Mr. Margaritis Schoinas, the Greek Vice President of the European Commission, says: “European cultural creation, with its richness, history and diversity, is at the core of the values and life of the modern European, providing a unique benefit for social cohesion, creativity, sense of security and the personal well-being of citizens. Given that in 2020 the Cultural and Creative Industries suffered serious adverse effects due to the pandemic, there is still time to act collectively to support the industry to overcome the critical challenges it faces. ”
MORE ON THE STUDY
The study was commissioned by GESAC (European Grouping of Societies of Authors and Composers) and brought together a broad array of partners; AEPO-ARTIS, EUROCINEMA, EUROCOPYA, EVA, FIAPF, IMPALA, IVF, SAA, SROC, and supportive organisations; AER, CEPIC, EACA, ECSA, EGDF, EPC, FEP, FERA, FSE, IFRRO, IMPF, highlighting the cross-sectoral support for its findings and recommendations.
STUDY WEBSITE
Download the Summary in English
Download the Summary in Greek
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About GESAC
GESAC groups 32 of the largest authors’ societies in the European Union, Iceland, Norway and Switzerland. They defend and promote the rights of more than 1 million creators and rights holders in the areas of music, audiovisual works, visual arts, and literary and dramatic works.