banKrUpt, franc’route
Read in both Le Monde (Sept) and Nature (26 Sept) concerning articles about the poor financial state of many higher education institutions in the UK, if not the most prestigious ones… (Warwick being so far preserved from that issue, if not the neighbouring University of Coventry.) Up to 80% of French universities—prestigious and less prestigious alike—are also facing repeated deficits, for several years in a row, if mostly for different reasons besides the after-effects of COVID and the economical crisis amplified by the Russian invasion.
The main difference (between France and Britain—minus bonnie Scotland!) is in the UK government not providing direct support to higher education institutions, treating them as businesses that must make a profit on average to survive. To add insult to injury, the short-sighted Sunak Government has strongly reduced the number of foreign students (that they considered immigrants) when those are a key component of the universities business models since they pay much higher fees compared with the capped fees for UK nationals. Surprisingly (to me), the new Labour government does not intend to change either policy. The more surprising (to me) when the first institutions to fail will be (are?) those concentrating students from less privileged backgrounds. Quite paradoxical for a party with social ideals and socialist roots. Besides, repeated reductions of the attractivity of Britain for higher education may reach a no-return point in terms of its (World first-tier) scientific productivity.
France is financing its universities for 60% of their budget, while tuition fees in national universities (that do no include Paris Dauphine) are nominal for EU students (and special cases like PhD programs). Progressive cuts have led to tighter budgets, more deficit, with limited alternative sources of financing, since raising students fees is completely taboo. Added to academic positions being little attractive (for offering comparatively low salaries), this abides poorly for France keeping being part of top higher education countries. (It already figures very rarely in the country comparisons produced by Nature on an almost weekly basis.) The new higher education minister is known for pushing towards more “autonomy” (read less financing) of universities and the current State deficit may prove the tipping point for cutting further State support for public higher education institutions at large and fundamental research.

November 14, 2024 at 9:07 pm
French universities presumably could raise student fees in line with inflation, so approximately the same value would be paid. France has great practitioners in finance who should be able to explain such adjustments.
Bob Siegfried
November 14, 2024 at 10:01 pm
The positions on student fees are more ideological than financial, hence harder to shift.