Milan-Cortina Olympics face up to €300 million budget shortfall

The 2026 Milan–Cortina Winter Olympic and Paralympic Games, once presented as a modern, sustainable and regionally balanced project, have come under scrutiny following the conclusion of the event, as a major financial deficit has emerged.

The organising committee is facing a shortfall estimated between €130 million and €300 million, with some figures suggesting the gap could reach around €310 million, Caliber.Az reports via foreign media.

The deficit is understood to stem from two main factors: significantly higher-than-expected costs, estimated at around €230 million above plan, and lower-than-anticipated revenues, which fell short by approximately €80 million.

Overall spending on the Games and associated infrastructure is estimated to have reached between €5.4 billion and €5.9 billion, reinforcing concerns that hosting the Olympics remains a major financial challenge even for advanced economies.

One of the key drivers of the overspend was delays in infrastructure projects. Among the most affected was the Milan ice hockey arena, where construction setbacks forced organisers to cover costs early using alternative funding sources. Officials reportedly said that without such emergency measures, staging the competitions would not have been possible.

The financial strain is particularly sensitive because the organising fund is required to remain balanced, increasing pressure on stakeholders to secure additional financing.

The largest burden is expected to fall on the state and regional authorities. It is estimated that around €200 million of the remaining deficit will be split between the Italian government and local institutions. Lombardy, which hosted most of the events, could contribute up to €77 million, while Veneto and the Cortina municipalities may be responsible for up to €39 million.

At the same time, hopes are pinned on the International Olympic Committee (IOC), which organisers expect to contribute funding covering at least one third of the deficit. Without such support, the financial pressure on local authorities could become politically and economically significant.

A previously established €143 million reserve fund may provide some relief, but is not sufficient to cover the entire shortfall.

Criticism of the project is already growing. Regional politicians argue that the Olympic “legacy” may prove more costly than beneficial, particularly amid concerns over insufficient investment in healthcare, public transport and regional development.

Nevertheless, organisers and local authorities continue to highlight infrastructure gains, noting that completed projects are valued at nearly €900 million, with a further half-billion euros in investments expected in the coming years.

The key question remains unresolved: how expensive the Olympic “celebration” ultimately was. A final answer is expected only in spring 2027, when the closing financial accounts are formally approved.

By Aghakazim Guliyev