Resolution on Financial Transparency in Public Universities 

Public universities play an indispensable role in advancing research, fostering innovation, and providing accessible higher education to millions of students(1). The financial operations of public universities are fragmented, opaque, and difficult to scrutinise. This lack of transparency carries significant consequences: it undermines public trust, limits the quality of democratic oversight, and impedes evidence-based policymaking at both national and European levels(2).

While some institutions publish detailed annual accounts, others provide only minimal or non-standardised information, often using formats that are inaccessible to the general public. This makes it nearly impossible for students, staff, policymakers, or taxpayers to understand how public money is spent. 

These shortcomings are especially alarming at a time when higher education systems across Europe are under intense pressure. Many universities face rising enrolment numbers, growing infrastructure needs, and increasing expectations regarding research output and international competitiveness. Simultaneously, several Member States struggle with chronic underfunding of higher education, and in many cases, national budgets have not kept pace with inflation or demographic change(3). Universities collect levies from students with no tracking of the money, leading to distrust between the University and Students. 

The lack of clear financial information also has profound implications for students and academic staff. Students, particularly those from vulnerable backgrounds, often find themselves excluded from decision-making processes that directly affect the affordability and quality of their education. Staff, meanwhile, face growing workloads, uncertainty around resource allocation, and limited insight into how university budgets are prioritised. A transparent financial environment is a prerequisite for meaningful participation, informed dialogue, and fair governance within higher education institutions.

The absence of a common transparency framework prevents policymakers from comparing institutions, detecting structural weaknesses, or identifying best practices. 

Transparency is not an administrative burden but a fundamental democratic principle. It ensures that public funds often amounting to billions of euros annually are used efficiently, responsibly, and in ways that benefit society as a whole. It also strengthens the legitimacy of universities at a time when public trust in institutions is under strain.

The European Students’ Union (ESU) and national student unions across the EU have repeatedly emphasised the importance of transparent and accountable governance in higher education. Students, as primary stakeholders, deserve full clarity about how their universities allocate funds & levies, prioritise budgets, and plan long-term investments. Yet without harmonised reporting standards, the vast majority of financial decisions remain incomprehensible to those most affected by them.

Given these challenges, and in light of mounting evidence that current financial reporting practices are insufficient, ESU stresses the urgent need for an EU-wide initiative to improve transparency and demand to reflect the fundamental principles required to safeguard democratic accountability, strengthen good governance, and ensure the long-term sustainability of Europe’s public universities:

1. Enhancing Public Access and Transparency.

Improving the accessibility of university budget information to the broader public significantly strengthens institutional transparency and democratic accountability. When budget overviews and spending priorities are openly available, universities can be more easily evaluated by students, policymakers, civil society, and taxpayers. This also facilitates external auditing and monitoring, reducing the risk of mismanagement and reinforcing public trust in higher education institutions. 

2.       Strengthening Data Collection and Improving the Reliability of Analyses. Comprehensive and publicly accessible budget information enables more robust and accurate data collection within the higher education sector. Reliable financial data is essential for policymakers, researchers, and university leaders who must analyse trends, identify structural challenges, and evaluate the effectiveness of spending decisions. Improved data quality leads to a clearer understanding of how taxpayer money is allocated and used across institutions, creating a stronger basis for evidence-based policymaking at both national and European levels. 

3.       Establishing a Public Five-Year Financial Report. Introducing a mandatory public five-year fiancial report, looking at the investment and expenditure of the university would provide long-term visibility on how they plan to allocate resources, develop infrastructure, and respond to emerging challenges. Such a forward- looking document would demonstrate strategic planning and reinforce the responsible use of public funds.  

UNEL and AMLÉ share the stance that the current lack of financial transparency represents a structural weakness in the governance of European higher education. Without clear, comparable, and accessible financial information, universities cannot be held accountable; policymakers cannot allocate resources effectively; and students cannot participate meaningfully in decisions that shape their academic futures. The introduction of a EU-wide transparency framework is not simply a bureaucratic reform. It is a democratic necessity.

1 https://www.oecd.org/education/education-at-a-glance/ , OECD Indicators C1, C3. 

2 https://esu-online.org/wp-content/uploads/2015/12/Policy-Paper-on-Public-Responsibility-for-Higher Education-and-Research.pdf , Sections 2.1, 2.2, and 4.

3  https://www.eua.eu/publications/reports/public-funding-observatory-2021-2022-part-1.html.