'No Need for Terror Cover', Says Euro 2004

Euro 2004 will not be insured against cancellation in the event of a terrorist attack because European soccer chiefs believe the tournament will be safe because the Americans are not playing.

The controversial decision comes weeks after 191 people were killed in bomb attacks in Madrid, and just days after the International Olympic Committee announced it had taken out $170 million (£96m) of cover against the risk that the games this summer, in Athens, are called off.

Yesterday, Uefa, the organiser of the Euro 2004 tournament, which will be held in Portugal, defended its move. A Uefa spokesman said: 'We did not feel it was necessary to get an insurance policy against cancellation. We are not facing the same situation the Olympic committee is facing - the US is not playing in Euro 2004.'

However, he stressed that the tournament had insured itself against death and injury to spectators, as well as for damage to stadiums and other facilities during the matches.

Euro 2004 kicks off in Lisbon in six weeks and is expected to attract tens of thousands of fans from across the continent. Tight security is expected at England games because of the UK's involvement in the Iraq war.

Last month, a suspected plot to explode a bomb during the Manchester United ver sus Liverpool match at Old Trafford was foiled.

Because of international events, insurers have raised their premiums for large-scale sports events. Several firms refused to provide cancellation cover for the 2002 World Cup in South Korea and Japan, following the September 11 attacks in the US.