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With Italy eliminated from the 2024 European Championships, it is interesting to explore the economic impact that a victory could have had on the country.
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According to FIGC estimates, winning the European Championships in 2021 led to an additional GDP growth of 0.7 per cent, equivalent to approximately EUR 12 billion. If Italy had replicated this success in 2024, the positive effects on the economy would have been significant and widespread.
Increase in domestic consumption
During major sporting events such as the European Championships, domestic consumption increases significantly. This phenomenon is fuelled by fans’ increased spending on gadgets, official clothing, food and drink during matches. Bars, restaurants and other public places directly benefit from this increase in consumption. According to Confcommercio, during the period of the European Championships in 2021, consumption related to the event saw an increase of 10-15% compared to normal periods.
Increased consumer confidence
Winning a major international tournament can have a positive psychological effect on the population, increasing consumer confidence. This increased confidence translates into increased spending and investment by households and businesses. A study conducted by Oxford University showed that national sporting successes can improve consumer confidence by up to 5 per cent in the months following the event.
Increased sports practice
A sports triumph stimulates the population’s interest in sports, with significant benefits for the fitness and sports equipment industry. This increase in physical activity can lead to a growth in sales of sportswear, equipment and related services. According to CONI, after winning the European Championships in 2021, interest in youth football increased by 20 per cent, leading to an increase in enrolments in football schools.
Improved international perception
Winning a major sporting event improves the international perception of the country, boosting exports and increasing tourist flows. Events with a high media profile, such as winning the European Championships, improve the country’s image, attract foreign investment and increase the influx of tourists. The ENIT (National Tourism Agency) found that tourism in Italy increased by 12% in the quarter after the 2021 triumph.
Economic projection
If Italy had won Euro 2024, the economic effects would have been significant. Projections indicate a possible GDP growth of 0.7 per cent, or around EUR 12 billion. This increase would have affected several sectors of the Italian economy, including retail, tourism, the sports industry and the labour market. GDP growth would also have meant improved tax revenues, giving the government more resources for public investment and debt reduction.
Effects on monetary policies
Rising shipping costs and other inflationary pressures could be further exacerbated by a spike in consumption linked to a victory at the Europeans. However, the combined effect of increased consumer confidence and improved international perceptions could help balance these pressures, supporting more stable economic growth.
Final considerations
Although Italy did not triumph this year, the analysis of potential revenues shows how much sporting success can positively influence a country’s economy. The effects of a victory at the European Championships would have provided an important economic stimulus, boosting consumer confidence, increasing consumption and improving Italy’s international image.
Another reason why Italians would cheer wholeheartedly for the national team, aware that football, in addition to passion, can bring concrete benefits to the country’s economy.
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