Birmingham City Council filed a section 114 order last week which means it is essentially bankrupt.

Alexander Stadium, which was renovated for last year’s successful Commonwealth Games in Birmingham, is set to be the venue for the event.

It will be the first time in the 94-year history of the European Championships that the event has been staged in Britain.

With 124 gold medals, Great Britain is the most successful nation in European Athletics Championships history.

At the time of bidding to host the 2026 European Championships last November, Birmingham City Council’s Cabinet was asked to underwrite a contribution of £13.7 million ($17 million/€16 million) which it was claimed would be reduce with successful bids for funding to both UK Sport and the Department for Culture, Media & Sport.

Since then, a massive equal pay liability - thought to now top £1 billion ($1.3 billion/€1.2 billion) - along with the costs of putting right a disastrous IT implementation programme, and the rising costs of meeting demand for adult social care, the housing crisis and children's services, have all taken their toll on the city’s finances.

Officials in Europe’s largest local authority are now guaranteeing only essential services and investigating where they can cut costs.

The Council's recovery plan is due to be presented during an extraordinary meeting on September 25.

"We are actively assessing the situation in relation to the Birmingham 2026 European Athletics Championships in conjunction with Local Organising Committee and the Birmingham City Council and expecting to receive further information from the Birmingham City Council," European Athletics said in a statement.

"European Athletics would also like to reiterate confidence in all our British-based partners for the Birmingham 2026 European Athletics Championships including the Local Organising Committee, Birmingham City Council, UK Athletics, and the other relevant UK governing sports bodies."

Last year's European Athletics Championships were held in Munich and the 2024 edition is due to take place in Rome. 

Birmingham is also due to host the International Gymnastics Federation World Trampoline Championships between November 9 and 19 at the Utilita Arena.

This event appears to remain unaffected with ticket sales progressing.

Birmingham is also scheduled to host the SportAccord World Sport & Business Summit, the Olympic Movement’s biggest networking meeting, next April.

SportAccord organisers claim they have been assured by organisers in Birmingham that the city’s financial situation will not impact upon their event.

Tony Hadley, chair of Birchfield Harriers, the athletics club based at the Alexander Stadium, is fearful that if Birmingham withdraws from hosting the European Athletics Championships will undo much of the good work achieved by the Commonwealth Games.

"My concern is we've got a fantastic reputation for putting on major events, not just the Commonwealth [Games] but others before that,” he told the BBC.

“And if Birmingham was to pull out now, that would ruin that reputation.

"We've got three years to go, that's a long time in sport, that's a long time in politics, let’s all be calm and just give the city and the [United Kingdom] Government time in which to work this out."