Funding for EU Universities: A Mixed Bag
This month, the Europe University Association’s Public Funding Observatory released a report on public funding of EU institutes of higher education. The report reveals the complex factors underlying this funding. The wide range across the EU in funding often reflected the economic situation of countries over the past six years. Twenty states (or other units) provided 2014 data, which reflected funds received this year for higher education. Half of them received increased nominal (not adjusted for inflation) public funding compared to 2013. All figures for 2014 are in nominal terms.
The data in the report were obtained in the spring and summer of this year, go back as far as 2008 and are based on information from the National Rectors’ Conferences. Data from French-speaking Belgium and Belgium-Flanders were reported separately. Figures from the UK reflect teaching funding for England plus research funding for the UK as a whole. A total of 28 countries or other units submitted information.
Funding grew the most this year for Portugal, Poland, Norway and Sweden. Portugal’s 16.7% rise in funding to €655 million ($826 million = €0.79 = $1) in 2014 was offset by €200 million ($252 million) in cuts to universities from 2005 to 2013, according to the report. Academic funding in Poland rose 8.0% to €3,446 million ($4,345 million) in 2014. From 2008 to 2014, the country’s 9.7% real-term–funding growth was due to both increased investment and deflation, coinciding with a drop in student numbers. In 2014, Norway and Sweden gained 6.2% to €3,768 million ($4,751 million) and 4.3% to €6,173 million ($7,783 million), respectively, in funding. In real terms, since 2008, Sweden and Norway showed the highest rates of increase, each at about 23%, outpacing rises in student numbers.
In Hungary, Iceland and the Netherlands, funding rose this year but fell over the study’s span. Academic funding in 2014 grew 2.7%, 2.6% and 2.0% to €450 million ($567 million), €115 million ($145 million) and €3,295 million ($4,155 million), respectively. With inflation, from 2008 to 2014, there was a 40% loss in funding for Hungary and a 0.6% cut each for Iceland and the Netherlands. According to the report, the 0.6% fall in Dutch funding over the study’s course might be exacerbated by recent government changes to universities’ fee structures.
Serbia and French-speaking Belgium both posted 2014 gains of 1.2% to €237 million ($299 million) and €607 million ($765 million), respectively. Croatia also had a small increase of 0.2% to €371 million ($468 million). The report revealed that while public investment in universities in French-speaking Belgium from 2008 to 2014 grew almost 13%, it was offset by a 25% rise in student numbers from 2008 to 2012. Serbia and Croatia’s short-term gains were undercut by longer-term losses. The report indicated that Serbia’s 32% nominal increase over the span of the study translated into a 10% real-term decrease, and funding in Croatia was reduced each year since 2008, with funding down more than 8% from 2008 to 2014.
Austria and Italy had no change in 2014 investments, at €2,470 million ($3,114 million) and €6,576 million ($8,291 million), respectively. The report stated that Austria’s real-term, 18% funding gain since 2008 was offset by a 23% rise in student numbers. While student numbers have steadily decreased in Italy over the same time span, real-term funding fell 21%.
All countries with lower 2014 funding also showed real-term declines from 2008 to 2014. The Czech Republic and Slovenia each lost 0.2% of university investments in 2014 to €794 million ($1,001 million) and €247 million ($311 million), respectively. Real-term losses from 2008 to 2014 were 18% and 10%, respectively. Both Slovakia, whose €442 million ($715 million) in 2014 funding reflected a 0.3% drop, and Slovenia experienced real-term declines over the study period due to recent cuts following increased investment. Spain and the UK experienced decreases of 1.5% to €7,405 million ($9,337 million) and 11.9% to €8,691 million ($10,958 million), respectively, in 2014. Their real-term losses were 16% and 36% over six years, respectively, in part offset by recent increases in university fees.
Aside from the UK, the largest funding cuts in 2014 were to universities in Lithuania, Ireland and Greece. Public investment fell 8.8% to €177 million ($223 million), 9.1% to €1,013 million ($1,277 million) and 13.3% to €133 million ($168 million), respectively. In real terms, the countries sustained funding drops of 36%, 35% and over 50% since 2008. Lithuania’s decrease was buffered by lower student numbers, and similarly, Ireland had only a 15% rise in student numbers.
Data from 2014 were unavailable for Belgium-Flanders, Denmark, Estonia, Finland, France, Germany, Latvia and Luxembourg. Germany and France are among the top five countries for the study period for academic investment. Real-term German funding rose approximately 23% since 2008. However, the report states that a major portion of the gain is to account for recent growth in student numbers—28.9% over those same years. From 2008 to 2012, French funding of higher education fluctuated less than 5%, but student numbers grew 7%. The report stated that French universities might face a rise in structural costs and uncertain funding for state-region contracts not yet finalized.

