Funding of Education in Europe : The Impact of the Economic Crisis

High quality education and training are essential if Europe is to make a speedy recovery from the most severe economic and financial crisis for 50 years. Qualified people with the right skills can boost the European Union's economy by leading innovation and improving competitiveness. However, as a result of the financial and economic crisis, public finances in all Member States are under great pressure. Governments are seeking ways to reduce budget deficits and manage public debt without dismantling the foundations of sustainable growth. While no direct link can be established between the level of funding of the education systems and student's learning outcomes, there is a general understanding that investing in high quality education and training should continue to be a priority. Nevertheless, the sector is not immune to austerity measures, particularly in countries where the need for short-term fiscal consolidation is greatest. This report looks at the trends in education spending over the period 2000-2012 and examines the recent impact that the financial and economic crisis has had on education budgets across Europe in 2011 and 2012. The analysis covers the developments in education funding from pre-primary to tertiary level, while also providing an overview of the main trends in the adult learning sector. As Eurostat data on expenditure in education for 2011 and 2012 will not be available before mid-2013, for these years the report uses information from national education budgets. Education budgets adopted by national authorities can be seen as a reliable proxy of education spending in the respective years and provide a key to understanding the political priorities for the sector. The comparative analysis is arranged in five chapters, two chapters deal with the overall changes in education funding and three thematic chapters assess the impact of the downturn on three of the pillars of the education system, namely, human resources, education infrastructure and financial support for students. In each chapter, the appraisal of the more recent changes in funding and policy priorities is based on information collected from the Eurydice Network. This analysis is accompanied by a view of the longer term trends based on statistical data available from Eurostat. The main findings of the report are explained in an executive summary following this introduction.