Romania has the lowest public funding for education in the EU: 3% of GDP, compared to the European average of 4.7%

Eurostat data for 2023 places Romania in last place in the Union both in terms of the share of public spending on education in GDP and in terms of the average annual amount spent per student or pupil. At the EU level, public funding remained at 4.7% of GDP, below the maximum of 5% recorded in 2020.

Romania had in 2023 the lowest share of public spending on education in the European Union, equivalent to 3% of gross domestic product, while the EU average was 4.7%. Eurostat data also shows that Romania had the lowest average spending per student or pupil among the countries for which comparable information is available, at 2,775 euros per year.

In short

1. Public spending on education represented 4.7% of the EU GDP in 2023, the same level as in 2022 and 0.3 percentage points below the maximum of 5% from 2020.

2. Sweden had the highest share in the EU, with 6.8% of GDP, followed by Finland with 6.3%, Belgium with 6.2%, and Denmark with 6.1%.

3. Romania was in last place, with 3% of GDP, followed by Greece with 3.3%, Malta with 3.4%, and Hungary with 3.6%.

4. The average total spending for educational institutions in Romania was 2,775 euros per student or pupil, the lowest reported value. In Luxembourg, this reached 27,531 euros.

5. In most EU countries, the largest part of the money for education goes to primary and lower secondary education, and teachers' salaries represent the main category of spending in many systems.

Public spending on education in the European Union remained stable in 2023 at 4.7% of GDP, after the same level in the previous year. However, the share is still lower than in 2020, when public funding for education reached 5% of the Union's economy, the highest level since the beginning of the statistical series in 2012.

The indicator includes public funding for the educational system from preschool to university and doctoral education, but excludes early educational development aimed at very young children.

The differences between states are significant. Sweden allocated 6.8% of GDP to education, the highest proportion in the Union. Finland reached 6.3%, Belgium 6.2%, and Denmark 6.1%.

For most of the other member states, public spending ranged between 3.9% and 5.3% of GDP.

Romania is well below this range, at 3%. Croatia follows with 3.1%, based on 2022 data, Greece with 3.3%, Malta with 3.4%, and Hungary with 3.6%.

The share in GDP shows how much of a state's economic resources are directed towards education, but does not indicate how much money actually reaches each student or pupil. For this reason, Eurostat also provides data on spending by educational institutions reported per number of enrolled individuals.

And according to this indicator, Romania is at the bottom of the ranking. The average annual spending for a student or pupil was 2,775 euros.

Bulgaria, the next state with a low value among those presented by Eurostat, spent an average of 3,754 euros per student or pupil.

In most EU countries, annual spending ranged between 3,754 euros in Bulgaria and 15,323 euros in Denmark.

Luxembourg is well above this range, with an average of 27,531 euros for each student or pupil.

These values include both public and private sources that fund educational institutions and should not be confused with the amount received directly by a student or pupil. They cover the costs of institutions, including staff, buildings, materials, administration, and services provided to students.

The structure of education systems varies from one state to another, which influences comparisons. Salary costs, class sizes, levels of education, number of students, and organization of institutions can create significant differences between countries.

The decline in the school population can also modify the spending calculated per student. If a state maintains the same budget but has fewer enrolled children, the average amount per student can increase even without an increase in total funding.

Eurostat shows that, at the European level, the main source of funding for education is the state. Depending on the country, governments have provided between 64% and 94.8% of total funding.

The lowest share of government funding was in Greece, at 64%, and the highest in Luxembourg, at 94.8%.

In some states, households, companies, and other private organizations play a much more important role. Private sources accounted for between one-fifth and one-quarter of education funding in Portugal, Malta, and Spain, and over a quarter in Cyprus and Greece.

Money is distributed differently also among the levels of the educational system. At the EU level, the largest part of spending in 2023, 40.5%, went to primary and lower secondary education.

Tertiary education received 26.3% of spending, while upper secondary and non-tertiary post-secondary education received 21.2%.

Preschool education accounted for 12% of the total.

Primary and lower secondary education was the largest category of spending in all member states for which data is available.

The importance of universities varies significantly. Spending on tertiary education represented only 11% of the total in Luxembourg, but 38.1% in Denmark and 34.1% in Austria.

In most states for which comparable information is available, the average cost per student increases with the level of education, and universities have the highest spending per student.

Funding for institutions is primarily used for current costs, especially staff. In nine of the 16 states for which Eurostat has detailed comparable data, teachers' salaries accounted for the majority of spending by educational institutions.

Investments in buildings, equipment, and other assets represent a smaller proportion. Romania and Belgium had a share of capital spending below 5% of the total current and capital spending of educational institutions.

In Greece, Hungary, the Netherlands, Slovakia, and Poland, as well as in several other states, capital investments represented at least 10%.

The data show significant differences also in the financial support provided directly to students, pupils, and families.

For higher education, the average public support in the EU was 1,801 euros for each student in 2023. This can include scholarships, public loans, and other direct forms of aid related to student status.

Denmark provided an average of 8,204 euros for each student in higher education. Ireland, based on 2022 data, had a value of 8,300 euros.

Sweden, the Netherlands, and Germany each exceeded 3,000 euros per student.

At the other end, the average support was only nine euros per student in Latvia. The differences also reflect the very different ways in which states organize tuition fees, scholarships, loans, and social protection systems.

In most countries, direct support for university students is mainly provided through scholarships.

Hungary, the Netherlands, and Sweden are among the states where loans represent the majority of direct financial aid.

Eurostat emphasizes that this data does not capture all forms of support. Families and students may also receive tax benefits, transport services, accommodation, meals, or other assistance that do not fully appear in the indicator regarding direct financial support.

Data on educational spending cover funding for institutions, transfers to households and students, and private contributions, using a common methodology from UNESCO, OECD, and Eurostat to allow comparisons between states.

The level of funding does not directly measure the quality of educational outcomes, but shows the resources that societies allocate to schools, universities, staff, infrastructure, and support for students. In 2023, Romania was at the lowest level in the EU both in terms of the share of public funding in GDP and in terms of average spending per student or pupil.

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