This takes place in Germany at a jazz fest. Perhaps downtown Freiberg. This may be a Renaissance Festival or a competition. When I was there, with the exchange students, I enjoyed watching the bands. It could be the town square with fountains. There's a name on the tuba so it may be a competition between towns and where no cars are allowed. That man in the background is capturing a lot of pictures.
The woman sure likes to dance! Is she doing the Jitterbug? She may be an exhibitionist, showing off her high heels. She could be the grocer's wife, named Hilda, who knows everyone. She looks like she is 40-50 years young at heart! You can tell by the length of her skirt. I wonder if she is a secretary because she has keys pinned to her sweater so she won't loose them. Some songs they may be playing are "Show Me the Way to Go Home" or "Dancing to the Street Band".