EU Nations Increase Education Spending Again

Brussels – The EU Commission’s report “Investing in Education 2025,” released on Wednesday in Brussels, indicates that public investment in education has rebounded post-Covid-19 pandemic, yet it remains below pre-crisis levels. In 2023, EU countries allocated 806 billion euros to education, with substantial disparities across the continent; Austria is at the lower end, dedicating just under 10 percent of its public spending.

National education expenditure in the EU averages 9.6 percent of total public spending and 4.7 percent of gross domestic product (GDP). Estonia leads with the highest allocation at 14.5 percent, followed closely by Sweden at 14.4 percent and Latvia at 14 percent. In contrast, Italy, Greece, and Romania allocate the least, with Italy at 7.3 percent, Greece at 8 percent, and Romania at 8.1 percent. In terms of GDP, Sweden also tops the list at 7.2 percent, while Ireland spends the least at 2.8 percent; Austria allocates about 5 percent.

Most public education funds are directed toward schools, with over 70 percent of spending in the EU going to this sector in 2023. This is almost evenly split between pre-primary and primary schools (35 percent) and secondary schools (37 percent), while tertiary education receives 16 percent. Austria’s distribution aligns with the EU average.

The report underscores education’s critical role, suggesting that the GDP of European countries could rise by 8 to 10 percent by 2030 if more individuals acquire adequate basic skills. Additionally, higher education correlates with increased earnings; just one additional year of education could enhance a person’s income in Europe by 7 percent.

The Commission stresses the necessity of high-quality education to tackle demographic changes in Europe, including skilled labor shortages. An aging population poses a risk of reducing the workforce and straining public finances. Thus, the Commission urges EU states to boost investments in education, particularly for younger generations, to sustain economic vitality. (28.08.2025)