Demographic challenges open up opportunities for quality investment in education, new report shows
Investing in quality education brings multiple economic and social benefits.
The “Investing in Education” report provides new findings in the areas of effectiveness and efficiency of investment in education. It also presents an overview of developments in investment in education in EU countries.
Education is an engine of economic vitality
Recent research demonstrates that higher basic skill levels cause higher economic growth, making education a strategic economic asset. Tackling educational inequality is key to promoting intergenerational fairness and mobilising all economic potential. The report finds that in countries with a smaller gap between rich and poor, children's educational success is less dependent on their parents' education.
Investing in education is also key to addressing Europe's demographic transition. The report suggests that, based on likely trends in population and funding, European countries are expected to spend much more per student by 2030. This will create more opportunities for investing in quality improvements, such as modernised curricula, enhanced teacher training, better teacher working conditions, and more effective integration of advanced technologies in classrooms. Quality education will reduce skills shortages, helping to counteract the effects of demographic decline.
Publications
Investment in education is recovering amid challenges
Following the pandemic’s disruption, the latest data reveals a moderate rebound in national public expenditure on education across the EU. In 2023, it reached 9.6% of total public expenditure and 4.7% of GDP on average. Yet disparities between countries persist and competition for public funding among policy sectors is increasing.
Making investment more strategic
The current EU economic governance framework offers countries more flexibility to invest in growth enhancing reforms, including education.
The Union of Skills and the European Education Area identify investment in education as a tool to strengthening the European economic and social model. EU funding allocates almost €150 billion for education and skills from 2021 to 2027. This funding is key for several areas, such as improving educational infrastructure, adapting education systems to the digital transition and promoting learning mobility.
Policy background
“Investing in Education” is an annual report of the European Commission’s Learning Lab on Investing in Quality Education and Training.
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