Introduction and background (taken from p. 8 of the study)

Demands and expectations on universities both in teaching and research are growing rapidly. However public investment in Higher Education in the European Union member states is less than its competitors. The costs of universities’ activities are rising and hence the fi nancial sustainability of their missions will certainly be the primary issue of concern for universities in the 21st century. The fi rst step in responding to these pressures is for universities to identify the real costs of their activities. The European University Association has conducted this project to examine European universities’ progress towards this fi rst goal and the relationship between this progress and individual universities’ autonomy and accountability. The project has been undertaken with the support of the Directorate-General for Education and Culture of the European Commission.

Since 2005, EUA had been examining the issues of funding, autonomy and accountability through engaging its members, some 800 European universities in 46 countries and 35 national rectors’ conferences, in launching
an evidence-based debate on improving and updating funding structures. Conferences, workshops and projects assessed the status of system changes for funding and analysed various European funding and costing models.

The objectives of this study are to provide information and empirical data for the debate on financial sustainability from an institutional perspective, analyse the status quo of the development of full costing and the relationship between autonomy and accountability and financial sustainability.

The report addresses several parties and includes policy recommendations as well as practical advice and recomendations for universities.