Estonia has become the latest EU country to support its events industry with a cancellation insurance fund, following similar initiatives in countries including Denmark, Germany and The Netherlands.

The Estonian government has created a €42m (£36m) aid package for its cultural sector, including a €6m (£5.1m) “risk” fund for major events such as festivals and sporting fixtures.

It said the €6m fund has been established to help cover unavoidable costs that are incurred if an event is cancelled, postponed or limited due to Covid-related restrictions.

The fund has been announced on the back of extensive cross-industry lobbying by event operators including Helen Sildna, founder of Tallinn Music Week.

She said, “Today is a special day. The cultural sector proved that there is great strength in cooperation and the whole sector can continue to work with more confidence. It is also significant that the members of the government understand that culture supports both the economy as well as our citizens’ mental health. The new risk fund is meant for large events and festivals to cover unavoidable costs in case of cancellation, postponement, and restrictions.

“The purpose of the risk fund is to encourage organisers to plan events in the second half of the year in order to restart the economy, yet provide confidence that their expenses will be covered in changing circumstances. The sector’s next objective is to continue working together in order for culture to have a clear part in the EU relief packages as well.”

Tallinn Music Week (TMW) has been rescheduled, with a hybrid physical and digital version of the event due to take place from 9-13 June.