Investment in education across Europe is increasing

A new report from the European Commission highlights a positive shift in education funding across Europe, which is boosting the EU’s competitive advantage. The report, entitled ‘Investing in Education 2025’, details multiple economic and social benefits and shows that public investment in education is recovering after the decline caused by the COVID-19 pandemic, although it has not yet reached pre-crisis levels. This improvement is positive for the objectives of the Skills Union Strategy and suggests promising benefits for the economy and society.

In total, EU countries spent €806 billion on education in 2023. National expenditure on education reached 9.6% of total public expenditure and 4.7% of gross domestic product (GDP) on average, with variations between Member States.

Roxana Mînzatu, Executive Vice-President responsible for Social Rights and Capabilities, Quality Jobs and Readiness, said: “Spending on education is an investment, not a cost. And the EU must be ready for the future. The upward trend highlighted in the ‘Investing in Education 2025’ report shows that across the EU, education is once again a driver of competitiveness and economic resilience. This is why the proposed next multiannual financial framework, presented on 16 July 2025, supports increased funding for education and skills through national and regional partnership plans, a new European Competitiveness Fund and a strengthened Erasmus+ programme.”

According to recent estimates, if more people possess sufficient basic skills by 2030, the GDP of European countries could increase by between 8% and 10% above current forecasts. Furthermore, people with higher levels of education tend to earn more: in Europe, just one additional year of education can increase a person’s income by 7%.

The EU’s new economic governance framework and the Skills Union open the door to greater strategic investment in education. While the primary responsibility for funding education lies with national governments, EU funding in the sector plays a crucial role in developing a highly skilled and adaptable workforce, particularly in view of the green and digital transitions. Approximately €148 billion has been allocated to education and skills between 2021 and 2027 through EU instruments such as Erasmus+ and the European Social Fund Plus. A further €75 billion has been made available for investments under the Recovery and Resilience Facility for the period 2021-2026. In addition, Horizon Europe provides additional support for educational research.

More information: European Commission