England in the final: EM euphoria helps British economy

England’s national football team will be in the final of a European Championship for the first time on Sunday. The euphoria of the fans not only boosts sales in the pubs.

Is there a positive link between EM euphoria and the UK economy? Finance Minister Rishi Sunak is convinced: “Yes, I think there is,” says the politician. It is obvious that the pub operators benefit. Some of them even say that the success of the English team will save their livelihood, because not only do the guests come in large numbers, they also stay longer. According to Barclaycard, the British spent 4.5 percent more in pubs on the first weekend of the European Championship compared to the previous weekend. The value is likely to have risen further since then.

Final participation as a push for the economy?

Finance Minister Sunak believes, however, that the EM will also have a positive effect on the consumption-driven economy: “Football strengthens consumer confidence even further. This is now back to the level that prevailed before the pandemic. And things that lead to it that we feel good is good for the economy. ”

At the 2018 World Cup, the Center for Retail Research, which analyzes retail data, estimated that the British would spend an additional £ 3 billion if England reached the final. At that time, however, the semifinals were over for the Three Lions.

The corona rules continue to work

However, there is also skepticism about stimulating the economy. Critical voices do not believe that more is being spent, only that the spending will be distributed differently. Due to Corona, the distance rules that limit sales in pubs and restaurants still apply.

Before the semi-finals between England and Denmark, the British Beer and Pub Association had assumed that instead of the otherwise possible twelve million pints, just under seven million would be sold. It is still unclear how many Brits had to sleep off their intoxication and partied sick the day after the semi-finals.

Sterling has nothing to do with sterling

On the other hand, the analysts at Deutsche Bank are already certain of another point. You have an internationally valid tip for everyone who is in a football frenzy, which is: The performance of striker Raheem Sterling says nothing about the development of the pound sterling – despite the fact that they have the same name. Unfortunately, according to the analysts, there is no connection between performance on the pitch and that on the currency markets.