The 2024 Paris Olympics were a spectacle for the ages! It brought memories, records, and iconic moments to the world. It was once upon a time even lauded for having a budget-conscious planning model, too! But now, that stands changed. As the Olympic rings come down and the Paris Olympic and Paralympic Games fade into distant memory, France is left with a bill of over €8 billion. But isn’t this amount still a move to boost the economy?

Well, yes, when put simply. The €8 billion comes primarily from private sponsors and contributions from the International Olympic Committee (IOC). And only €2 billion comes from national resources. Paris was perhaps one of the most economical events with them, relying largely on pre-existing venues rather than building new ones. The last Olympics in Tokyo cost over €12 billion, so it is pretty financially sustainable! Before concluding on that, Charles de Courson, France’s general budget rapporteur, has made some interesting revelations that could affect the economy big time!

Was Paris Olympics a financial downhill for France?

Charles de Courson recently noticed some anomalies in the books! He has flagged unanticipated costs that reveal a big financial issue. He found €1.9 billion in unbudgeted expenses. These are expenses beyond the initial plan, such as police bonuses and resource allocations from the defense ministry, that contributed to the overrun. The Minister Delegate for the Budget, Laurent Saint-Martin, went on to explain that these costs came from the deployment of staff from both interior and defense ministries. However, he went on to add, “Everyone will say ‘it cost more than expected, but given the image we left, it is well worth this excess.” But was it really worth it?

Well, let’s look at the stats. The Paris Olympics Games have given the economy a slight boost. But it’s only 0.4% between the July-September quarter! Heightened consumption and tourism primarily drove this rise. Unfortunately, this spike did not last. Some have questioned if the financial risks will truly pay off. Ecologist lawmaker Jean-Claude Raux questioned what remains of the once-proclaimed vision for a “great sporting nation.” But he’s not alone!

Belkhir Belhaddad, co-president of the Olympic monitoring group, went on to say, “We have the impression that nothing happened.” But something did happen! While the economic benefits at large are still to be seen, the micro-benefits are definitely there! For example, the sports clubs have seen an increase in participation. Especially in Olympic medal-winning sports like table tennis, fencing, and swimming. Additionally, the Pont d’Iéna, which links the Eiffel Tower and the Palais de Chaillot, is going to become a pedestrian-only zone, a legacy inspired by the Games. But as the world knows, not all remnants are beautiful!

There are advocacy groups like “The Other Side of the Medal” who have brought up questions about displacement. It is being said that there was the controversial displacement of homeless individuals from France in preparation for the Paris Olympics. While all these issues might be valid, this is not the first time a country has gone into a financial crisis hosting the Olympics!

It is not the first time a country has faced financial issues after an Olympics!

Paris does not stand alone in the financial mess. History shows us that many cities have had debts after the Games. For example, Montreal had major debts after the 1976 Summer Olympics. The country took almost three years to fully recover. But that’s not all! There is also Greece! Greece, after hosting the 2004 Athens Olympics, had a major crisis.

The facilities built for the Olympics are now abandoned, gathering dust and adding to Greece’s debt woes. It is a bitter remnant of a year of celebrations! Even Russia is on the list! Russia’s 2014 Sochi Winter Games was one of the most expensive events in history, with nearly €47 billion in spending. However, despite these costs, many do believe that it will pay off, boosting tourism and urban infrastructure. However, for Paris, only time will tell if the benefits will outweigh the price they’ve paid.