A new report from the European Commission highlights a positive shift in education funding across Europe, offering a boost to the EU’s competitive edge. Titled ‘Investing in Education 2025,’ the report details multiple economic and social benefits and shows that public investment in education is recovering after the setbacks of the Covid-19 pandemic – though it has not yet reached the levels seen before the crisis. This uptick supports the goals of the Union of Skills strategy and suggests promising benefits for the region’s economy and society.
In total, EU countries spent €806 billion on education in 2023. National education spending reached 9.6% of total public expenditure and 4.7% of Gross Domestic Product (GDP) on average, with variations between Member States.
Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu said: “Spending on education is an investment, not a cost. And the EU has to be ready for the future. The upward trend evidenced in the ‘Investing in Education 2025′ report shows that across the EU education is again a driver of competitiveness and economic resilience. That is why the proposed next Multiannual Financial Framework presented on 16 July 2025, supports increased funding in education and skills, through National and Regional Partnership Plans, a new European Competitiveness Fund, and a reinforced Erasmus+ programme.”
Recent estimates suggest that if more people possessed sufficient levels of basic skills by 2030, the GDP of European countries could increase by between 8% to 10% above current projections. Moreover, individuals with a higher level of education tend to earn more: just one additional year of education can raise a person’s income by 7% in Europe.
The new EU economic governance framework and the Union of Skills open the door for more strategic education investment. While the primary responsibility for education financing lies with national governments, EU funding in the sector plays a crucial role in developing an adaptable and high skilled workforce, particularly in preparation for the green and digital transitions. Approximately €148 billion has been earmarked for education and skills from 2021-2027 through EU instruments such as Erasmus+ and the European Social Fund+. A further €75 billion has been made available for investment under the Recovery and Resilience Facility for the period 2021-2026. Additional support to educational research is available through Horizon Europe.
The full report ‘Investing in Education 2025′ is available online.
Source: European Commission
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