Sustainable Funding Push for European University Alliances: EUA Calls for End to Haphazard Funding of 65 EU University Alliances Involving 560+ Instit

The Origins and Objectives of the European Universities Initiative

The European Universities Initiative (EUI), launched by the European Commission in 2019 as part of the broader European Education Area strategy, represents a bold vision for the future of higher education across the continent. This flagship program encourages higher education institutions (HEIs) to form transnational alliances aimed at fostering deep structural integration. The core idea is to create 'universities of the future' that transcend national borders, enabling seamless student and staff mobility, joint degree programs, shared research agendas, and innovative approaches to teaching and civic engagement.

At its heart, the EUI seeks to strengthen European identity, values, and competitiveness in a global landscape marked by geopolitical tensions and technological disruption. By pooling resources and expertise from diverse institutions, these alliances address longstanding barriers such as fragmented curricula, limited cross-border recognition of qualifications, and uneven access to research funding. Participation is open to universities, universities of applied sciences, and other HEIs from EU member states and Erasmus+ program countries, promoting inclusivity across regions and institution types.

Since inception, the initiative has evolved from pilot phases—starting with 17 alliances in 2019—to a robust network. It aligns with key EU priorities like the European Skills Agenda and the Green Deal, emphasizing interdisciplinary challenges such as sustainability, digital transformation, and health innovation. Early evaluations highlight tangible progress in micro-credential development and virtual mobility schemes, setting the stage for more ambitious transformations.

Current Scale: 65 Alliances Uniting Over 560 Institutions

Today, the EUI boasts 65 alliances comprising more than 560 higher education institutions from across Europe. This impressive scale underscores the program's appeal, with alliances ranging from health-focused consortia to innovation hubs tackling societal grand challenges. Institutions from all 27 EU countries plus associated nations participate, ensuring broad geographical representation—from urban powerhouses like Paris and Amsterdam to regional universities in Eastern and Southern Europe.

These alliances typically involve 5-10 core partners, supplemented by a network of associate members exceeding 2,200 entities. Funding primarily flows through Erasmus+, covering up to 80% of operational costs for setup and running, with the remaining 20% sourced from national governments or institutional budgets. While this has enabled rapid expansion, it has also exposed vulnerabilities in long-term viability, as alliances grapple with project-based grants lasting 3-5 years.

The diversity of alliances enriches the ecosystem: for instance, thematic groupings address climate action, digital societies, or cultural heritage, allowing tailored responses to regional needs while contributing to pan-European goals.

Unveiling the Haphazard Funding Landscape

Despite achievements, a persistent critique echoes through the sector: the funding model for European University Alliances remains haphazard and unsustainable. Project-based financing from disparate sources—Erasmus+ for education, Horizon Europe for research, and the European Institute of Innovation and Technology (EIT) for innovation—creates silos and unpredictability. Short grant cycles force alliances to constantly reapply, diverting energy from strategic goals to administrative hurdles.

National co-funding exacerbates inequalities. Countries like France and the Netherlands provide structured support, often compensating the 20% shortfall, while others such as Sweden offer none, leaving institutions to shoulder costs amid tightening domestic budgets. This patchwork results in divergent alliance capacities: some thrive with blended finance, others struggle with coverage gaps.

Thomas Estermann, Director of Governance, Funding and Public Policy Development at the European University Association (EUA), articulates the core issue: alliances risk stalling as pilots without pathways to permanence. Surveys of 168 institutions, including 98 alliance members, reveal widespread calls for reform to unlock full potential.

EUA's Landmark Briefing: Strategies for Financial Sustainability

The EUA's recent briefing, 'Strategies for the Financial Sustainability of European Universities Alliances,' released in early 2026, provides a roadmap based on empirical evidence. Drawing from institutional surveys, it proposes a conceptual framework anchored in institutional purpose and added value. Four pillars underpin viability: understanding full costs (including hidden administrative burdens), income diversification (beyond EU grants to national and private sources), efficiency measures (streamlined governance), and robust leadership.

This model positions alliances within Europe's broader public funding ecosystem, advocating shared responsibilities between EU and national levels. EUA emphasizes that sustainability demands more than ad-hoc grants; it requires predictable streams enabling long-term planning and transformation.

The briefing highlights progress in joint programs but warns of over-reliance on short-term EU funds, urging a shift to holistic support spanning education, research, and innovation.

Stakeholder Perspectives: A Chorus for Change

Stakeholders unite in demanding reform. The European Consortium of Innovative Universities (ECIU) and FOREU4All network praise alliances' role in competitiveness but decry funding fragmentation. Beatrix Busse, chair of FOREU4All and EUniWell's chief development officer, calls for 'holistic funding covering all missions' and a 'single access point' with simplified procedures.

National rectors' conferences and student unions echo these sentiments, stressing equity. Olga Wessels from ECIU notes unequal co-funding burdens institutions in under-supportive countries. Policymakers in the European Parliament advocate recognizing alliances' strategic value in cohesion and innovation.

This consensus builds momentum as the EU negotiates its 2028-2034 Multiannual Financial Framework (MFF).

Photo by UNICEF on Unsplash

Real-World Challenges: Lessons from Case Studies

Case studies illuminate hurdles and triumphs. EUniWell, uniting universities from the UK, Ireland, Netherlands, Finland, and Austria, focuses on well-being. Despite joint master's launches and 1,000+ mobilities, it faces funding gaps post-Erasmus+ cycles, relying on national supplements.

4EU+ Alliance (Charles University Prague, University of Copenhagen, etc.) excels in climate research, developing interoperable IT for joint degrees. Yet, legal barriers to credential recognition persist, compounded by admin overload.

CIVIS (11 universities across eight countries) pioneered micro-credentials, reaching 10,000 learners, but grapples with diverse national regulations. These examples reveal common pain points: staff buy-in (needing career incentives), interoperability (digital tools), and scaling impact amid fiscal pressures.

• Administrative Burden: Multi-annual reporting across programs drains resources.
• Equity Gaps: Peripheral regions lag in participation.
• Innovation Potential: Siloed funds limit R&I integration.

National Co-Funding: A Patchwork of Support

National contributions vary wildly, shaping alliance fortunes. France's 'Idex' scheme and Netherlands' 'National Action Programme' offer millions in matching funds, enabling ambitions like shared campuses. In contrast, Nordic countries prioritize institutional autonomy, providing minimal targeted aid.

A 2026 Academic Cooperation Association (ACA) study maps 20+ schemes, recommending alignment between ministries and agencies. Germany and Italy experiment with performance-based incentives, while Eastern Europe focuses on capacity-building. Harmonizing these could amplify EU investments, but sovereignty tensions loom.

Pathways Forward: EUA's Four Pillars in Action

EUA's framework offers actionable steps. First, full-cost accounting reveals true expenses, often 30-50% above grants. Diversification taps philanthropy, industry partnerships, and tuition from joint programs.

Efficiency demands lean governance: alliances like ARQUS use digital platforms for decision-making. Leadership training, via EUA programs, fosters shared vision. Step-by-step: assess costs, map revenues, optimize structures, invest in governance.

• Cost Transparency: Pilot full-cost models.
• Diversify: Seek Horizon synergies.
• Efficiency: Streamline QA.
• Lead: Embed in strategies.

The EU Budget Horizon: Erasmus+ Under Scrutiny

The upcoming MFF (2028-2034) is pivotal. The Commission proposes €40 billion for Erasmus+ (up from €26 billion current), but EUA, Parliament, and allies demand €60 billion to sustain alliances. Negotiations pit fiscal conservatives against education champions, with alliances positioned as geopolitical investments.

Proposed reforms include flexible institution-driven funds and connectivity across programs. Success here could cement EUI as a cornerstone of European HE.

Implications for Europe's Higher Education Landscape

Sustainable funding promises ripple effects: enhanced graduate employability via joint skills, bolstered R&I output, and resilient institutions amid crises. For peripheral HEIs, alliances democratize excellence; for students, borderless opportunities.

Professionals stand to benefit: alliances create roles in transnational governance, research coordination, and program design. Explore openings at higher-ed-jobs or university-jobs in Europe.

Photo by Jan Kopřiva on Unsplash

Future Outlook: From Pilots to Pillars

With reforms, alliances could evolve into statutory entities issuing 'European Degrees' by 2028, as piloted. Optimism tempers caution: geopolitical shifts demand agile funding. EUA's vision: alliances as catalysts for a unified, innovative HE space.

Policymakers must act swiftly in MFF talks. Institutions: prioritize diversification. Stakeholders: advocate relentlessly.

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