Salzburg’s 2010 Olympic Bid crossed a major hurdle on Tuesday when the Council of Ministers of the Austrian Federal Government authorized the ministries to provide all guarantees demanded by the IOC with due regard for Austrian laws and appropriate EU guidelines. As part of the proposal, the Federal government would join the Salzburg 2010 organizing committee, should they be elected as host, in order to ensure that the financial guarantees are met in accordance with IOC expectations.
“Today’s resolution by the Council of Ministers is important for the Salzburg Bid…” commented Managing Director Dr. Egon Winkler on the day’s events. The decision alleviates fears that escalated last week when the local media believed that the guarantees weren’t forthcoming. Without such guarantees, the bid would have been severely impaired and might have been forced to withdraw. Berne was forced to drop out of the 2010 race in September when a referendum denied government financing of the Games.
The timing was also important on this issue – now government documents providing the necessary guarantees can be included in the Salzburg Bid Book which is due to the IOC on Janaury 10, 2003 and will hit the presses by December 1 according to Gernot Leitner, co-ordinator of Games planning in Salzburg. The Bid Book outlines a City’s candidacy in detail and is formatted according to strict IOC requirements. One section requests “financial guarantees from competent authorities” which include deficit coverage as well as security, medical, customs and other government related services to be provided to the organizing committee at no cost.
Michael Schuen, spokesperson for Salzburg 2010 told GamesBids.com “Of course, we do NOT project a deficit in our plannings…” He went on to explain that dealing with the remote possibility that a deficit should occur is an IOC requirement.
Now a working group, consisting of representatives of the three levels of government will try to work out a formula that determines what percentage of the guarantee each will be responsible for. Early reports suggest that the division should be 80% federal, 15% regional and 5% for the City of Salzburg which is according to budget size and potential Games benefits.
“The bid is getting on very well”, the Federal Chancellor told the press following the meeting.
