This is lesson 16 of the second module of EUPress Teacher Training, which covers the macro topic of ‘European Education Area’.
This lesson will explore investment in education and training in the European Union.
Public investment in education across the European Union remains broadly stable — but significant national disparities persist, and demographic pressures are set to reshape the future of education funding. As the lecturer in the EUPress series explains, education accounts for an average of 4.7% of EU GDP, or roughly 10% of total public expenditure. But beneath these averages lies a fragmented landscape.
Big spenders and budget laggards
According to 2019 data:
- Ireland spent the least on education relative to GDP (3.1%).
- Estonia, Belgium, Denmark, and Sweden spent the most, exceeding 6% of GDP.
Most resources flow to secondary and post-secondary non-tertiary education, followed by primary and pre-primary levels, and lastly tertiary institutions.
Where the money goes: teachers first
Teaching staff represent the largest cost driver:
- 65% of education budgets go to salaries and remuneration.
- The rest is split between goods and services, capital investment (such as buildings), and social benefits.
The lecturer highlights that teacher pay and workforce investment remain central to education funding, while innovation and infrastructure often rely on secondary or temporary funding streams.
COVID-19: A digital wake-up call
The shift to online learning during the pandemic exposed uneven preparedness across the EU. Many teachers and students lacked the tools, skills, or conditions to support digital learning. The crisis forced policymakers to reconsider long-standing gaps in ICT infrastructure, teacher training, and digital equity.
Demographics: The hidden force
Long-term funding patterns will also depend on demographics. With student populations set to decline in 21 EU Member States and grow in five (Bulgaria, Czechia, Germany, Slovakia, Slovenia), education budgets will adjust accordingly — with broader implications for pensions and healthcare systems.
NextGenerationEU: A new boost for skills
Education and skills are among the top beneficiaries of the EU’s Recovery and Resilience Facility (RRF). Roughly 13% of investments in national plans under the RRF concern education and training — a notable share for a sector that lacks direct EU legislative powers.
Through these programs, the Commission aims to support schools, modernise vocational training, and foster digital and green skills aligned with Europe’s twin transitions.
