Security of Public Funding and Transformation of Contemporary European Universities

Abstract

The genesis of the European university dates back to the Middle Ages. It was then that the original university models that would be transformed in the subsequent centuries were developed. It seems that we are currently observing yet another stage of this ongoing transformation entailing challenges that result from the progressing, multifaceted process of verifying the model of W. von Humboldt’s classical university. There is a trend indicating that after the common reception of the idea of enterprising university, European universities are now faced with the need to adapt to the reality of knowledge-based economy. Undoubtedly, one of the key aspects related to the direction of said changes revolves around the security of academic financing. There is a growing pressure on universities to become active participants in the process of developing knowledge-based economy. Under these new circumstances, universities seem, on the one hand, predestined to play a significant role in the same, and on the other, faced with the threat of decline resulting from the gradual limitation of access to public financing. They now find themselves at the centre of the financial game of budgetary subsidisation. Public spending in this sphere is strongly affected by the given country’s overall financial standing and the adopted public spending policies. In ageing Europe, politicians cannot afford to ignore the needs of a wide group of voters who are more inclined to support arguments advocating increased financing of e.g. the healthcare system, rather than young people’s education. In this context, it becomes apparent that universities must take active steps towards securing additional financing from the so-called third revenue stream, primarily the private sector. The research financing target of 3% GDP, adopted in the Lisbon and Barcelona Declarations (over 20 years ago), has yet to be achieved in Western Europe, despite intensive reforms implemented to that end. In this context, European universities continue to trail significantly behind their North American counterparts. At the same time, in order to maintain their historically high social standing and prestige, such institutions must not ignore relevant social and economic expectations.