> so is losing the tax revenue

If you take into account that most of the people sitting on the floor of the square bought their beers in the convenience store and probably paid less than one Euro for each of them, I don't think that the state will loose a massive amount of income via taxes.

On the other hand, I know that measuring everything by the economical peformance is a really common thing to do in the other side of the Atlantic, but the neigbours have the right to be able to sleep, even with the windows open. Those squares are not zoned as industrial area, so they are meant to be silent at night. By law.