By John Edwards PhD, EURASHE Secretary-General
In two weeks’ time the European Commission will publish its closely anticipated proposal for the 2028-2034 long term budget, which is known as the EU’s Multiannual Financial Framework (MFF). Among the rumours, position papers and lobbying, the general feeling in Brussels is trepidation. Two unprecedented factors make the MFF proposal and subsequent haggling with Council and Parliament the most unpredictable and potentially fraught process at this time in the seven-year cycle.
1. One is the commitment last week by members of NATO – a large majority of which are part of the EU – to spend 5% of their GDP on defence. This means the size of the MFF may well be lower, as governments divert resources to meet the target. Furthermore, the funding programmes themselves, from cohesion to research and innovation, and even education, will have large parts dedicated to ‘dual use’ investments; namely those with both military and civilian objectives.
2. The second novel factor is that the MFF will need to repay debt – money that the EU was allowed to borrow from financial markets in its own name to pay for the Recovery and Resilience Fund following the Covid-19 pandemic.
In these circumstances, the job of slicing up the EU’s budget will be more difficult than ever: There will be less money to go around, and the Commission will try to ensure that funding programmes contribute to its political priorities – and quickly. So what does all this mean for education and research, as well as funding for industrial, regional and social development, all of which are relevant to higher education institutions (HEIs)?
Aligning Higher Education with Europe’s competitiveness agenda
While we wait for details of the MFF proposal as well as its constituent funding programmes, there seems to be one thing that we can be sure to expect: HEIs as well as other beneficiaries will need to ensure that their projects contribute to European competitiveness. Ever since Ursula von der Leyen started her second term as European Commission President, many university lobbyists have strongly resisted the idea to integrate R&I spending into a large European Competitiveness Fund (ECF). There are now rumours that even the non-mobility elements of Erasmus+ (e.g. for European Universities, Centres of Vocational Excellence and Innovation Alliances), will be part of the ECF. While these lobbyists were reassured when the Commission President indicated that the successor to Horizon Europe would still be a ‘self-standing’ Programme, she also said that it would be closely tied to the ECF.
I share these concerns, but only to a certain extent. Nobody from the HE sector wants research, education, and innovation to lose out in the MFF. However, asking HEIs to contribute to competitiveness should be welcomed, and if this can be clearly demonstrated there should be no shortage of funds. As I highlighted last week at the 20th anniversary event of the Conference of Spanish Social Councils, HEIs are uniquely positioned to provide two ingredients requested by the Draghi report and the Commission’s Competitiveness Compass, namely, innovation and skills. However, meeting the challenge will require HEIs to be more agile and not afraid to engage with industry and employers.
On the one hand, HEIs need to understand and cater much more for the demand of knowledge and skills. No matter how good their education and research activities, this will not translate into competitiveness if learners fail to develop skills and knowledge that support economic productivity. Twenty years ago there was much talk about “entrepreneurial universities”, including a focus on spinoffs and spinouts. However, this is only part of the story – we also need knowledge to help existing firms, especially those in the cities and regions where HEIs are located, and skills so that learners can apply new knowledge in all types of jobs.
On the other hand HEIs need to adapt to changing demographic and economic trends. The number of traditional 18-23 year old students is declining rapidly. Fewer young people is only part of the reason; learners are increasingly working at the same time, and at all ages. This is to be welcomed, because real life experience is essential for learners to use their knowledge and skills in the workplace. While rapid technological change including artificial intelligence makes knowledge more accessible, capabilities to apply it in different sectors of the economy cannot be acquired so easily, and not only in the classroom. This is why governments should continue to promote dual higher education, degree level apprenticeships, experiential learning and other practice-based approaches.
In conclusion, higher education is essential for increasing productivity, and thus competitiveness, but only when the knowledge and skills of graduates are informed by economic demand. If HEIs can design and deliver courses with employers and work with industry to absorb knowledge, then they will be rightly seen as vital for competitiveness – and as a good investment for European public funds.
John Edwards PhD
EURASHE Secretary-General
John has a background is in economic geography, regional development and governance with a focus on EU policies for innovation and cohesion. Between 2011 and 2020 he worked for the European Commission’s Joint Research Centre, managing projects on the role of higher education and vocational excellence in the design and implementation of Smart Specialisation Strategies. He is a dual national PT/UK.
