Higher Education Funding in Europe

У статті з’ясовано роль освіти, зокрема вищої, у суспільстві та економіці країни. Інвестиції в освіту визнано одним із чинників, які визначатимуть майбутнє суспільства та економіки країни. Розкрито моделі та форми (модальності) фінансування закладів вищої освіти у країнах Європи. Визначено моделі фінансування закладів вищої освіти з орієнтацією на пропозицію і на попит та відмінності між ними. Наведено механізми розподілу блок-грантів у країнах Європи. Проаналізовано послуги освіти, у тому числі вищої, за джерелами її оплати в Україні та деяких країнах Європи.The role of education, particularly of higher education, in a society and an economy of the country is defined. Education is a key priority for the European Union, investment in education is recognized as one of the factors that will determine the future of society and the economy of the country. People’s ability to be entrepreneurial, to manage complex information, to think independently and creatively, using resources, that include digital ones, to be smart, balanced and to interact effectively are the most important characteristics today. In order to respond to these challenges, interactions between higher education systems and institutions, research and innovation are needed. It requires sustained, innovative and targeted funding. The models and forms (modalities) of funding of higher education institutions in Europe are revealed. Innovative models of financial resources allocation for higher education include: direct funding of higher education institution through line-item budgets, funding formula, performance contracts; indirect funding of education institutions through vouchers (targeted and universal), subsidies provided to students or their families as grants and scholarships, tax benefits, student loans. Public supply-side funding (Input- or performancebased) and private (demand-led) funding models are defined. The forms (modalities) of funding are identified. They are: block-grant, project-based, excellence funding, as well as other forms of direct funding, including targeted ones. Allocation mechanisms for block grants in Europe are provided. They include funding formula, performance contract with impact on funding, negotiation/historical determination. The main way of public funding of state higher education institutions is block grants based on the formula funding. Block grant funding based on negotiations is used in Austria, Germany and Spain. Education services (including higher education) by source of funding in Ukraine and some European countries are analyzed. Indicators of the education expenditures and the public expenditure on education shares in GDP in Ukraine compared to similar indicators of developed countries, indicate that it corresponds to or even exceeds its level. This requires further research to determine the priorities of public funding. In Ukraine, the volume of state expenditures on education, including higher education, in relative measure reached the optimal level, and it is possible to increase their quantitative absolute indicators only at the same time as the GDP of the country increases