Most European universities expect rising costs over the next five years but do not anticipate a corresponding increase in public funding or tuition fees, according to a new?report from the European University Association (EUA).

Nine out of 10 institutions?said academic staff costs had risen in the past five years ¨C with almost half reporting a ¡°sharp increase¡± ¨C while more than eight out of 10 said non-academic staff costs have also?gone up.

The EUA surveyed 168 institutions across 34 countries on their finances for the study, which also finds that more than six out of 10 reported increased capital expenditure, and eight of 10 said ¡°other operational costs¡± have risen, with inflation, the energy crisis and costs associated with the transition to net zero given as potential causes.

Looking to the next five years, the survey found that eight out of?10 institutions expect academic staff costs to increase, while seven out of?10 predict a rise in non-academic staff costs. More than six out of?10 anticipate capital expenditure?will rise, while two-thirds also foresee a growth in ¡°other operational costs¡±.

ÍøÆØÃÅ

Despite this,?less than half of the institutions surveyed said they expect core public funding ¨C their largest funding source ¨C to increase, with almost a third predicting stagnation and almost a fifth anticipating decline. Almost 60 per cent expect income from domestic tuition fees to ¡°stabilise or decrease¡±. Just under half predict national competitive funding will increase, with two-fifths expecting it to remain stable and a tenth foreseeing a decrease.

Countries should not rely on EU funding to make up the shortfall, the EUA warned: ¡°While the sector must continue to advocate for strong EU investment in higher education and research, European and national policymakers must acknowledge that EU funding cannot compensate for stagnant or declining domestic investment, despite pressure in some countries to rely on it as a substitute.¡±

ÍøÆØÃÅ

Pointing to public funding cuts in multiple countries ¨C budget restrictions in both France and the Netherlands, for instance, have sparked widespread protest ¨C as well as ¡°continued global political tensions¡±, the umbrella body called on universities to ¡°take action to strengthen their financial resilience¡±.

This action should incorporate ¡°income diversification, efficiency measures, internal capacity building and strategic prioritisation of activities¡±, as well as ¡°the development of leadership and management capacity¡± in order to ¡°navigate complexity, make difficult decisions and drive institutional transformation¡±.

In a statement, EUA president Josep Garrell said, ¡°The time has come to broaden the focus of university funding beyond core concepts of performance and competition. In a volatile, unpredictable environment, strategic focus and collaboration are the best assets for a sector that holds the keys to Europe¡¯s future.¡±

¡°Financial sustainability is, more than ever, a matter of strategic leadership for universities,¡± Garrell stressed.

ÍøÆØÃÅ

emily.dixon@timeshighereducation.com