New evidence was published by the Commission on the state and effectiveness of national funding schemes for the European University Initiative.
The European Universities Initiative (EUI) represents one of the key pillars of the European Education Area (EEA). The aim is to strengthen strategic partnerships between higher education institutions (HEIs) across Europe. By establishing long-term transnational alliances between HEIs, a structural and strategic exchange is facilitated to assure sustainable cooperation. So far, 44 European University Alliances have been selected under the calls for proposal in 2019, 2020 and 2022. Also a number of Swiss HEIs are members of the alliances such as the University of Lausanne in CIVIS, the University of Zurich in Una Europa, or the University of Geneva in 4EU+ for example (see SwissCore article).
On 22 March 2023, the Commission published an extensive study on the current state and effectiveness of national funding systems of higher education and their supporting impact on the EUI. The first part of the study illustrates the implementation of funding systems in the 27 EU member states with a particular focus on performance-based funding (PBF). This funding scheme allocates funds based on the outcomes (performance criteria) of an institution and exists in a large variety of PBF mechanisms. The second part of the study seeks to understand how and to what extend performance-based national funding schemes support the participation in transnational university alliances in the context of the EUI. The focus is set on the first generation (2019 and 2020) of 41 alliances for which a budget of up to €287 million was available, €5 million from Erasmus+ and €2 million from Horizon for each alliance. However, the EU programmes are not the only source of support as national contributions provided by the governments represent another revenue source strengthening the participation of HEIs in the alliances.
Member States support thereby the alliances in two ways: i. targeted funds that are allocated as a one-off contribution or for a particular period and/or, ii. funds that are part of the core funding of the HEIs. Regarding the first type of funding, 21 European higher education systems provide some form of targeted funding to the HEIs that are part of an alliance, while seven systems do not. This type of funding can vary in terms of form and amount and represent, for example, a compensation for the mandatory 20% co-funding of the participating institution. Regarding the national core funding for HEIs in alliances, 17 systems reward internationalisation directly or indirectly with core funding systems which work with internationalisation indicators or include transnational alliances in the funding criteria. Therefore, the institution receives financial assistance for its efforts to be part of a European University Alliance which could be considered as an incentive. Through participation in the alliance, student and staff mobility will be financially supported through a funding formula or a performance agreement with the national government. It is noteworthy that some systems present multiple funding options and that there is a great diversity in national funding contributions. Moreover, many institutions that are part of alliances draw on their own budget to supplement EU and national funding, sometimes exceeding the 20% co-funding requested by the Erasmus+ programme. A detailed overview of the diverse national contribution mechanisms can be found on page 51 of the report.
The study concludes with policy recommendations based on the observations and findings. Regarding performance-based funding, the recommendations include, for example, to have a clear outline of the goals which should be achieved with PBF, the implementation of smart performance measurement systems or a certain flexibility for HEIs within the PBF system. Moreover, specific recommendations on the funding of the EUI are made: i. For instance, a diversification of the funding sources combining European, national and regional funds, ii. an elaborated business model of the respective alliances to generate their own income, iii. or a higher degree of transparency of the own resources invested by the member institutions of the alliances. The Commission talks in this regard of the development of an investment pathway for the alliances. The Commission, Member States and alliances should furthermore remove in a joint effort the remaining regulatory barriers to allow a sustainable existence of the European University Alliances. All full members of the alliances can be found on the reference database OrReg providing information on higher education and other research institutions. More detailed information such as the students’ number or the number of doctoral researchers in the alliances are illustrated in the database ETER.
To conclude, the financial sustainability of the alliances will continue to depend on the EU grants and targeted national support. However, the EU and national contributions do not fully cover the costs of the activities of the alliances, the difference being compensated by the member institutions themselves. This demonstrates the commitment of the HEIs to the European University Alliances but also the challenges to their long-term sustainability.