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«February 2014 Review of the Balance of Competences between the United Kingdom and the European Union Culture, Tourism and Sport © Crown copyright ...»

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Union royale belge des sociétés de football association ASBL v Jean-Marc Bosman, Royal club liégeois SA v Jean-Marc Bosman and others and Union des associations européennes de football (UEFA) v Jean-Marc Bosman (Bosman), Cases C-415/93, [1995] E.C.R. I-04921.

KEA-DCES, Economic and Legal Aspects of Transfers of Players (2013).

22 Review of the Balance of Competences between the United Kingdom and the European Union: Culture, Tourism and Sport importance are free to air, meaning anyone can watch them on terrestrial TV.33 For the UK, the listed events are all sport related.

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Directive 2010/13/EU of the European Parliament and of the Council on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive), 2010.

Chapter 1: The Development of Competence and the Current State of Competence 23

The Transformation of the Football Sector The information contained in this text box is public source information from UEFA.

By the 1970s, football was enjoying tremendous mass public appeal. The old Inter-Cities’ Fairs Cup came under the full control of the Union des Associations Européennes de Football (UEFA) and was renamed the UEFA Cup in 1971. The UEFA Super Cup, involving the winners of the European Champion Clubs’ Cup and UEFA Cup Winners’ Cup, came into being in 1973. Three years later, a European competition for Under-21 players replaced the Under-23 competition and in 1977, the number of participants in the European Championship final round doubled from four to eight teams.

From the start of the 1990s, European football underwent a series of dramatic changes. The game became more commercially-oriented, and there were considerable developments in political, social and legal terms. Football was now not only an important social phenomenon – the game had become extremely big business, with huge sums of money at stake, and many stakeholders and interest groups involved.

In the 1990s and new millenium, European football experienced explosive growth and development. Aspects such as television, business and finance, marketing, sponsorship and global communication changed the face of the game, and political upheavals altered the map of Europe.

During the 1990s, the integration process within western Europe brought about the intensification of contacts between UEFA and the European Union on a host of matters, including cross-border television broadcasts. The Bosman ruling in 1995 obliged UEFA (and European football as a whole) to make wide-ranging changes to regulations and policies on international transfers, as well as on the fielding by clubs of foreign players. In 2001, following intensive negotiations, UEFA and FIFA joined forces to reach agreement with the European political authorities on a mutually-accepted international transfer system which was aimed at stabilising player/club relations, particularly from a contractual point of view, and protecting the smaller clubs, many of whom discover, train and develop the superstars of today and tomorrow.34 Competition Law and State Aid

1.38 Culture, tourism and sport are all affected by EU competition law, which is an exclusive competence of the EU. Perhaps the most relevant element of competition law for culture, tourism and sport is State aid, that is the intervention of the State to aid a particular sector, including by tax reliefs, lottery funding or local authority funding.

1.39 There are specific provisions for some State aid measures in relation to culture. This still requires approval by the Commission, but if a Member State can successfully argue that the aid is necessary to protect cultural diversity then aid is permissible. The UK has introduced tax reliefs for British films, animation and high-end TV, all of which were approved by the Commission on these grounds.

1.40 There are no specific provisions in the TFEU in relation to tourism or sport. However, the Commission has proposed considering amending its General Block Exemption Regulation to permit block exemptions in the areas of culture, heritage conservation and amateur sports.35 Please see information from UEFA, www.uefa.org/aboutuefa/organisation/history/chapter=2/index.htm, accessed on 3 February 2014.

Council Regulation 733/2013/EC, 2013, amending Regulation 994/98/EC on the application of Articles 92 and 93 of the Treaty establishing the European Community to certain categories of horizontal State aid, 1998.

Chapter 2:

Impact on the National Interest

2.1 Culture, tourism and sport in the UK support and reinforce each other as drivers for enriching society and boosting economic growth. The UK’s unique culture and heritage draw tourists from across the EU and the globe, boosting our economy, as does our reputation for world class sport, and for hosting major sporting events. This was demonstrated by the enormous success of the 2012 Olympic and Paralympic Games. UK culture is hugely important in defining what it means to be British. It is a core part of our national identity and underpins how we see ourselves. It also defines how the world sees the UK. UK culture is our hallmark, and makes the UK distinctive in a globalised world. The world was watching the UK during our Olympic year and British confidence, creativity and flair is more in demand than ever. Our culture, tourism, and sport help define both national and regional identities, and are a vital component of the UK’s capacity to promote itself abroad and our use of ‘soft power’.

2.2 In terms of their economic contribution, the arts and culture had a turnover of £12.4bn, and a Gross Value Added (GVA) of £5.9bn in 2011.1 The sector provided employment for over 110,000 full-time equivalent employees in the UK during the period 2008-2011.2

2.3 One of the great attractions for visitors to the UK is the range of its cultural offerings and rich heritage. At least £856m per annum of spending by tourists visiting the UK can be attributed directly to arts and culture.3

2.4 The inbound tourism market overall is the eighth biggest in the world, with 31m inbound visits per year.4 Its GVA economic output is expected to increase by 3.5% annually through to 2020. This is an important demand stimulus for the economy. The UK Tourism Satellite Account shows that, in 2011, tourism directly contributed GVA of over £50bn to the UK economy (4%).5 Economic analysis by Deloitte suggested that if indirect economic effects are also included, GVA could be as high as £115bn (9%).6 Tourism also makes a substantial contribution to employment in the UK with 2.7m employees working in Centre for Economics and Business Research (CEBR), The Contribution of the Arts and Culture to the National

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Please see information from VisitBritain. Available at: http://www.visitbritain.org/Images/Overseas%20 Visitors%20to%20Britain_tcm29-14708.pdf, accessed on 3 February 2014.

Office of National Statistics, Tourism Satellite Account.

Deloitte, The Economic Case for The Visitor Economy (2008).

26 Review of the Balance of Competences between the United Kingdom and the European Union: Culture, Tourism and Sport tourism associated industries in 2011, or 9% of all employee jobs, with a further 0.5m selfemployed. 1.7m of this employment is directly related to tourism.7

2.5 The sport sector was estimated to have generated just over £20bn GVA in 2010 in England, in addition to over £11bn in health benefits, and to have provided employment for more than 400,000 people.8 The UK’s thriving professional and amateur sports inspire people to lead more active and healthy lifestyles, raise self-esteem and bring communities together.

2.6 Recent major events such as the 2012 Olympics and the Queen’s Diamond Jubilee celebrations have contributed to promoting the UK ‘brand’ internationally. This has been actively supported by the GREAT campaign which is designed to raise the UK’s profile overseas, particularly in new developing markets such as Brazil, China, and India.

2.7 Sporting events can also be a significant tourist attraction: with the outstanding example being the 2012 Olympic Games, which attracted 685,000 visitors, with an average spend of £1,510 – double the amount of an average tourist trip.9

2.8 Apart from attracting visitors, the Olympics also generated £10bn in inward investment and exports in the year following the games.

2.9 It is therefore in the national interest to ensure that the balance of competence between the national Government and the EU supports and promotes the development of culture, tourism and sport in the UK.

The Views of Contributors

2.10 All 52 contributors who submitted evidence to this report held the view that the EU’s supporting competences in culture, tourism and sport were on balance either beneficial to the future development of these sectors or had the potential to be so.

2.11 It was notable that none of the contributors argued in favour of extension of the EU’s competences in these areas, and five contributors warned of the need to remain vigilant against moves by the European Union to extend its competence.

2.12 Contributors from all three sectors also commented on the impact of the EU’s activity on their sectors under competences not covered by this report, in particular in relation to State aid, immigration, the Single Market (free movement of persons, goods and services) Please see information from UNWTO, Tourism Highlights (2013). Available at: mkt.unwto.org/en/highlights, accessed on 3 February 2014.

Sport England, The Economic Value of Sport (2010).

HMG, Post Games Evaluation: Meta-Evaluation of The Impacts and Legacy of the London 2012 Olympic and

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and Structural Funds. This valuable evidence will be reflected in the reports that cover these issues later in the Review period.


2.13 The 30 contributors from the culture sector were the most unequivocal in their support of EU activity under its competence. The key focus for these contributors was funding from EU Culture programmes, which they saw as an important source of financial support for UK culture.

Between 2007-11, more than 200 UK participants in 176 transnational projects received funding form the EU Cultural Programme. The Culture Programme has supported a wealth of new artistic work which would not otherwise have been created. Arts Council England.

The Media Programme makes a vital financial and cultural contribution to the UK’s audio-visual sector […] From 2007-2012 UK companies received €48,269,500, while a further €38,516,019 supported releases of several hundred British films on the continent. British Film Institute.

2.14 A number of the contributors, including the British Council and Arts Council England, stressed the comparative success – almost double the average – of UK cultural organisations in securing EU funding despite the fact that we submit fewer applications per capita.

Over the past decade UK arts organisations have had a high success rate in applications to the Culture programme. In 2010/11, the UK had the “highest number of successful projects of any applicant country in the most popular strand” [the Culture Programme]. Arts Council England.

2.15 In its contribution the Independent Music Companies Association (IMPALA), representing over 4,000 cultural Small and Medium Enterprises (SMEs) across Europe, also made this point, referring to a May 2013 article in the Guardian newspaper highlighting the high success rate of UK applications for EU funding for the cultural and creative sectors – 46%, almost double the overall average success rate of 24%.10

2.16 All contributors from this sector stated that EU funding programmes offered an alternative source of public funding during a period of sustained fiscal constraint at national level. It could be argued therefore that the national interest could equally be served by the UK Government investing money it currently contributes towards Europe, directly into the sector.

2.17 The sums involved also need to be kept in perspective. In the case of the film industry, for example, the largest source of public funding to the sector was UK film tax relief, which provided £214m in 2011/12 (58.5% of the total). This was followed by the National Lottery (£52m, 14% of the total) and grant-in-aid (£42m, 11% of the total) to the British Film Institute (BFI) and the National Film and Television School (NFTS) via the DCMS. Film4 contributed £15m and BBC Films £12.5m. The EU contributed £6.6m, of which £5m came from the MEDIA Programme – 2% of the total.

2.18 Contributors including IMPALA and Arts Council England noted that there were benefits to the sector derived from this funding being directed through Europe that could not be achieved through national spending, and which enhanced the benefit of these programmes beyond their monetary value.

Yvette Vaughan Jones, ‘UK success rate is high and yet we put in fewer applicants per capita’, The Guardian (May 2013).

28 Review of the Balance of Competences between the United Kingdom and the European Union: Culture, Tourism and Sport The UK’s cultural and creative sectors are one of its strongest assets, and EU funding, which already benefits the UK, could further contribute to its growth.

Simultaneously, as some applications for EU funding require partnering up with other countries, this process helps build bridges and further expand across various EU markets, outside the UK. IMPALA.

The opportunities provided by EU funding have facilitated partnerships across national boundaries which have encouraged the valuable exchange of knowledge, skills, work and ideas, as well as expanding audiences. Arts Council England.

2.19 These contributors argued that the emphasis of the EU’s cultural funding programmes, namely bringing together cultural communities across Member States provides an incentive for collaboration which delivers multiple benefits, which are not achievable at a national level.

For some contributors this additional value derives from a wider networks of collections, knowledge and creativity and access to wider audiences.

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