Brussels: 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.
According to Cyprus News Agency, EU countries spent a total of £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 M®nzatu, emphasized the significance of this trend, stating that spending on education is considered an investment. The proposed next Multiannual Financial Framework supports increased funding in education and skills through various initiatives.
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. Furthermore, individuals with a higher level of education tend to earn more, with one additional year of education potentially raising 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 national governments primarily finance education, EU funding plays a crucial role in developing a 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+. An additional £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.