Berlin 2024 Games plan is on thin financial ice: expert

Wed Feb 11, 2015 9:15am EST
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By Karolos Grohmann

BERLIN (Reuters) - Berlin's potential 2024 Olympic bid could be the wrong financial decision with the city deep in debt and lacking the infrastructure to host such a global event, the German Institute for Economic Research (DIW) said on Wednesday.

Berlin, which staged the Games in 1936, and Hamburg are battling for the green light from the German sports authorities to launch a bid for the 2024 summer Olympics.

A decision by the German Olympic Sports Confederation (DOSB) will be taken in March.

Boston and Rome are the other two cities to officially announce their candidacy but others, including possibly Istanbul, Budapest and Paris, are likely to join the race by the September deadline.

The International Olympic Committee (IOC) will select the winning bid in 2017.

The German capital, though, should think twice about launching such a candidacy, said Karl Brenke, of the influential DIW, who specializes in macroeconomic developments in Germany.

He said history had shown initial estimates for the Games compared to what they end up costing were never the same while budgets only include the cost for the duration of the Games.

"Costs that are Games-related and come up after the Olympics are systematically blended out," he told Reuters.   Continued...

The Olympic rings are pictured next to the Aquatics Centre in London, in this file photo dated July 22, 2012.     REUTERS/David Gray