The European Commission published a report on ‘Investing in Education 2025’ on 27 August 2025. The report highlights a positive shift in education funding across Europe, which the EC sees as offering a boost to the EU’s competitive edge. The report details multiple economic and social benefits and shows that public investment in education is recovering after the setbacks of the Covid-19 pandemic – though it has not yet reached the levels seen before the crisis. This uptick supports the goals of the Union of Skills strategy and suggests promising benefits for the region’s economy and society.
In total, EU countries spent €806 billion on education in 2023. National education spending reached 9.6% of total public expenditure and 4.7% of Gross Domestic Product (GDP) on average, with variations between Member States. Recent estimates suggest that if more people possessed sufficient levels of basic skills by 2030, the GDP of European countries could increase by between 8% to 10% above current projections.
The new EU economic governance framework and the Union of Skills open the door for more strategic education investment. While the primary responsibility for education financing lies with national governments, EU funding in the sector plays a crucial role in developing an adaptable and highly skilled workforce, particularly in preparation for the green and digital transitions. Approximately €148 billion has been earmarked for education and skills from 2021-2027 through EU instruments such as Erasmus+ and the European Social Fund+. A further €75 billion has been made available for investment under the Recovery and Resilience Facility (RRF) for the period 2021-2026. Additional support to educational research is available through Horizon Europe.
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