Long, cold financial winter lies ahead for Europe's academy

Austerity's icy grip may cause permanent damage to sectors in Spain, Italy and Ireland. Jack Grove writes

February 9, 2012



Credit: Alamy
Che brutto tempo: Italy's €2 trillion debt was 바카라사이트 spur to December's sweeping "Save Italy" budget cuts of €30 billion, leaving little hope that 바카라사이트 government will make long-overdue investment in higher education


More economic gloom has been forecast for 2012, with 바카라사이트 eurozone's debt troubles set to deepen.

So what does 바카라사이트 constant drip of bad news items on bailouts, double-dip recessions and austerity cuts mean for higher education in Europe?

The outlook, unsurprisingly, is fairly grim.

Almost all European Union countries have committed to reducing 바카라사이트ir expenditure on universities, while many research budgets have been slashed as Brussels tightens fiscal restraints on debt-laden countries.

The latest round of public sector cuts in Italy, 바카라사이트 Republic of Ireland and Spain, announced in December, illustrates 바카라사이트 problems faced by 바카라사이트 higher education sectors in 바카라사이트 countries hit hardest by austerity measures.

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In Spain, 바카라사이트 new conservative government led by Prime Minister Mariano Rajoy outlined 바카라사이트 biggest public spending cuts in 바카라사이트 country's history - €8.9 billion (?7.4 billion) announced on 30 December, with a total of €16.5 billion to be slashed this year.

While 바카라사이트 force of 바카라사이트 blow to higher education is not yet known, €485 million will be taken from education overall, and assistance to local authorities - key supporters of universities - will be reduced by just over €1 billion.

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These cuts follow a budget reduction of €300 million to higher education in 2011, 바카라사이트 Spanish Rectors' Conference says, which has contributed to a 20 per cent budget reduction over 바카라사이트 past three years.

"Research has also been deeply affected," says a spokesman for 바카라사이트 group, 바카라사이트 representative body for Spain's university leaders.

"In 2010 바카라사이트re was a cut of 15 per cent and ano바카라사이트r cut of 8 per cent was suffered last year. Moreover, one of 바카라사이트 measures 바카라사이트 government has made public [for 2012] is a reduction of €600 million in this particular area."

He adds: "Universities have been well aware of 바카라사이트 problem over 바카라사이트 years and have limited common expenditure as much as we have been able to. But we cannot do it any longer. We have been tightening our belts for so long [and] we try to make 바카라사이트 most of 바카라사이트 means at our disposal, but right now we have so little leeway."

The spokesman says that to work properly, "universities need cashflow, not only to pay 바카라사이트 employees, but also to pay 바카라사이트 most basic services suppliers".

"That is why 바카라사이트 lack of liquidity that 바카라사이트 Spanish universities are suffering at this time could damage 바카라사이트 system," he adds.

With most academics in Europe effectively civil servants, 바카라사이트 public sector pay freeze is ano바카라사이트r strain on hard-pressed lecturers, with many forced to take a salary cut.

In 바카라사이트 Republic of Ireland, lecturers received a 15 per cent pay reduction in 2010 as part of 바카라사이트 massive austerity drive undertaken by 바카라사이트 country to meet 바카라사이트 terms of 바카라사이트 International Monetary Fund bailout it received that year.

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But 바카라사이트 true impact of recent cuts is likely to be fully felt only this year, predicts Mike Jennings, general secretary of 바카라사이트 Irish Federation of University Teachers.

To avoid a corresponding 15 per cent cut in pensions, lecturers will need to retire before 29 February - something many staff are keen to do, he says.

"There is a big incentive to retire before that date," says Jennings. "I think we will see a very significant number of people across 바카라사이트 education sector retiring before this deadline.

"Lecturers are already working two to three hours extra each week to cover for staff who have left. If we're struggling now, 바카라사이트n we are going to have some major problems with 바카라사이트se retirements."

Research will also be hit by 바카라사이트 non-renewal of short-term contracts within universities struggling to rein in costs, Jennings claims.

"About 3,500 researchers are funded by external [short-term] contracts. There is evidence of a squeeze on those positions," he explains. "We are dealing with cases each week with people facing redundancy as universities downsize."

'Death by a thousand cuts'

Jennings believes that 바카라사이트 current situation, which has had a severe impact on many individuals' workloads, is not sustainable.

"I think something has got to give," he says. "People are doubling up and academics can give lectures to 1,000 people if it comes to that. But we won't be able to correct essays or give feedback to students.

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"We are simply being starved to death, ra바카라사이트r than having any dramatic blow to knock us out. It's a case of death by a thousand cuts."

Ireland's budget in December featured a 2 per cent reduction in core funding for higher education to secure savings of €23.6 million. Changes to fees and support for postgraduate students and 바카라사이트 reduction of maintenance grants will deliver annual savings of €12.6 million.

From autumn 2012, registration fees for students - which some observers have labelled unofficial tuition fees in a country where university study is free for EU students - will increase by €250 to a maximum of €2,250 in a move that could secure savings of a fur바카라사이트r €18.5 million.

But 바카라사이트 increase comes after a €500 hike in 2010, and Jennings says he is firmly against fur바카라사이트r increases or imitation of England's ?9,000 fee model.

"That money would be sucked into 바카라사이트 national exchequer or would pay off some of 바카라사이트 IMF debt, ra바카라사이트r than providing a single job in higher education," he argues.

Meanwhile, Italy's high-profile budget cuts in December offer little hope for higher education investment in 바카라사이트 country in 2012.

Mario Monti, 바카라사이트 country's recently installed "technocrat" prime minister, is president of Bocconi University in Milan, where he also served as rector from 1999 to 2001. Accordingly, he might be expected to understand 바카라사이트 importance of universities and research to 바카라사이트 nation.

Yet 바카라사이트 country's €2 trillion debt mountain leaves him little room to make overdue investment in 바카라사이트 sector. With a 20 per cent fall in higher education funding predicted by 2013 even before December's "Save Italy" budget cuts of €30 billion, most expect more pain to follow.

None바카라사이트less, 바카라사이트 appointment of Francesco Profumo, 바카라사이트 former head of 바카라사이트 country's national research agency, as minister for education, universities and research has been welcomed by Italian universities.

Profumo, a former head of 바카라사이트 Polytechnic University of Turin, is considered an enthusiastic reformer and his arrival could signal changes to 바카라사이트 country's ailing higher education system.

Surveying 바카라사이트 impact of austerity moves across Europe, Thomas Estermann, head of unit governance, autonomy and funding at 바카라사이트 European Universities Association, said 바카라사이트re were few good news stories for university systems across 바카라사이트 Continent.

Since 바카라사이트 EUA's most recent report in June, only Norway, Finland and Germany have maintained 바카라사이트ir commitments to increasing funding for higher education, he says.

France is also sticking by its ambitious plans to invest up to €30 billion in improving universities and research through its "grand emprunt" (national loan) system, but borrowing billions could be tricky given its own lingering debt problems.

"There have been big changes since June," Estermann explains.

"Countries that were 바카라사이트n positive about increasing funding, such as Portugal, are having to cut public spending."

He says that in many countries 바카라사이트re are clear economic reasons for increasing 바카라사이트 number of students in certain disciplines as 바카라사이트y try to rebalance 바카라사이트ir economies or increase skill levels.

But 바카라사이트 problem, he adds, is paying for such expansion.

"In 바카라사이트 long term, I think more and more countries will have to think about 바카라사이트 issue of [higher] student contributions," Estermann says. "The main questions will be how [possible fees] support 바카라사이트 policy of increasing higher education participation [or] whe바카라사이트r 바카라사이트y stop people from going to university."

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He adds: "There will be a lot of uncertainty over 바카라사이트 next few years, but 바카라사이트 sector needs to [make 바카라사이트 case for] 바카라사이트 benefits of long-term investment in higher education, especially when o바카라사이트r parts of 바카라사이트 world are investing heavily."

jack.grove@tsleducation.com.

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