How a university is funded has a considerable impact on the quality and accessibility of its teaching and research. In Germany, public universities receive the majority of their funding from the government. This basic funding is supplemented by external funding and additional sources. Managing the finances of a university requires maintaining a balance between the basic funding it receives from the government, the competitive sphere of obtaining external funding, and any additional activities it carries out to boost revenue. The ultimate aim is to ensure that the university can function efficiently, ensure fair access to higher education, and remain competitive on the international stage.
Why is funding now an issue?
Simply put, a big university like Freie Universität Berlin requires a big budget. The university’s annual budget is over 700 million euros, including external funding. At first glance, this seems like a lot. However, most of this money is tied up in long-term financial commitments, such as personnel costs, rental contracts, building maintenance costs, infrastructure, and research projects.
When 37 million euros are suddenly missing from this very carefully balanced budget, it is difficult to maintain the illusion of “business as usual.” The significance of these budget cuts and their repercussions for Freie Universität are explained in detail below.