France faces economic fallout from Paris Olympics

After two long weeks of sporting celebrations, France is now facing the aftermath of the Paris Olympics. This hangover is not only accompanied by political controversy –The country has a provisional government Since July 16, there has been no clear majority in the National Assembly, nor in the economy. As was the case with the Olympics in London (2012), Rio de Janeiro (2016) and Tokyo (2021), The final bill for macro events was higher than initially expectedAlthough Macron’s government defends austerity, public finances will have to bear a large part of this additional cost.

When the bid was submitted in 2015, Paris 2024 organizers promised Cheaper event than previous eventTheir main argument is that “95% of the infrastructure already exists or will be temporary”. The promise of hosting several events in monumental non-permanent venues in the city – such as beach volleyball next to the Eiffel Tower or 3×3 basketball in the Plaza de Concordia – is one of the successes of these games. Not only does it provide spectacular images, but it also keeps the final costs down.

According to economist Arundel, the cost has risen to $10 billion

However, this did not prevent the additional costs compared to the original plan, which was about 3.3 billion. “But then they raised it to 6.2 billion euros and ended up being around 10 billion euros”explains people Economist Luc Arrondel, researcher at the French National Center for Scientific Research (CNRS) and the Paris School of Economics. According to this expert in sports economics, this growth has led to “More reasonable than the last Olympics”For example, the Tokyo Olympics budget increased from an initial $5 billion to a final $15 billion, and the London Olympics increased from $4.8 billion to $10.9 billion.

The public portion “increased from 20% to 50%”

However, in the case of the French capital, detailed costs will not be known until October next year. The Court of Auditors will then present its final report on the Paris 2024 Olympics.There will be a big difference between official data and final databecause indirect costs, such as the cost of the police force, are not taken into account.” Aurelie Trovefrom Francia Insumisa (similar to Sumar or Podemos). The progressive deputy promotes a “popular commission of inquiry” on these Olympics, which “will present its conclusions in September”. In addition, he wants a councillor.

As with previous Olympics, organizers of this one boasted that its economic model was virtually self-financing, without the need for large public investments. The final balance is more complicated. “The public component has gone from 20-25% to 40 or even 50% of total spending,” warned political scientist Alexandre Morteau in an interview with the magazine. Economical choice.

The French and international media praised the event for its success. The spectacle of some venues and the good atmosphere in the standsApart from the damage to several high-speed lines on the opening day, there were no notable incidents. To ensure security, about 30,000 police officers patrol the streets of the capital every day. These gendarmes, together with employees of the Paris Railways and Metropolitan Transport, They received an extraordinary prize of 1,500 to 1,900 eurosAlthough the French authorities announced a 10 billion euro cut in public spending at the beginning of the year, they still spared no expense to ensure the success of the Olympics.

“Socializing costs and privatizing benefits”

“The only winner of the quadrennial Olympics is the International Olympic Committee (IOC). We are witnessing the socialization of costs and the privatization of benefits,” lamented Jean-François Bourg, an economist and sports expert, in an interview with a local newspaper. allianceTo justify this major investment, its organizers cite the positive economic impact, especially on the fields of construction, tourism, security and event organization. The short-term impact is about 400 billion or 500 billionArendelle explained.

The contract between the organizing committee and the multinational company is unclear

However, questions remain about which companies and economic players will benefit the most. “We don’t know what type of contract COJO has signed (Organizing Committee) with large multinational companies,” said Truve. According to the rebellious leftist representative, in June “they filed a complaint against Havas, one of the telecommunications giants, for favoritism in the design of the mascot. “Contracts and There is a transparency issue” he added.

In addition to remembering the beauty and monumentality of Paris, questions about the legacy of these Olympic Games also dominate. Apart from a swimming pool in front of the Stade de France in Saint-Denis and a medium-sized pavilion in the north of the capital, the events left no major infrastructure. The main legacy may be Parisians will bathe in the Seine in summer 2025Invest $1.4 billion to improve river water quality. But all the controversy surrounding the issue – the triathlon had to be postponed for a day – leaves that possibility up in the air.

Austerity after Olympic celebrations

“I don’t think the Paris Olympics will leave a great legacy like many other Olympics,” Alondel said. Nevertheless, French authorities are pleased with the good progress of the event and the medal record of French athletes (16 gold medals and 64 metals in total). They don’t want the Olympic celebrations to end. The Olympics “showed the true face of France” “We don’t want life to go back to normal”Macron said at an event at the Elysee Palace on Monday.

Despite these comments and the interim nature of his government, acting Prime Minister Gabriel Attal announced this week that he would send letters to ministries to reduce their allocations. Your goal? Cut about 16.5 billionAfter his defeat in the European Parliament elections, he lost 83 members of parliament and National Assembly Districts 1-2macroeconomics also adheres to neoliberal economic policies. According to an adviser to the Elysee Palace who told AFP, the president “gave assurances on this” to large international businessmen such as Elon Musk (Tesla or Tesla) Meet on July 25.

Macron seems hell-bent on taking these measures, even though they do not enjoy the support of a majority of voters or lawmakers. They will all influence his choice of the next head of government, who will certainly not come from its ranks. New Popular FrontThe left-wing coalition won a narrow victory in the July 7 election, but the president Deny him the keys to the executive branch.

The new prime minister is likely to deliver a budget marked by austerity, which could lead to a vote of no confidence in the autumn. Their excuse for these cuts will be Public deficit (5.5% in 2023) and national debt (110% of GDP). While spending all the necessary resources to ensure the success of the Olympics, some standards were ignored.