Europe’s education gamble: Can the EU compete in a changing world?

On 1 December 2024, Ursula von der Leyen began her second mandate with a new team of Commissioners, presenting an ambitious vision for a Europe that is free, democratic, strong, secure, prosperous, and competitive. However, this vision confronts a world in turmoil: war rages in Ukraine, genocide and unrest scar the Middle East, China asserts its geopolitical influence, and transatlantic relations are strained by whispers of new trade restrictions. Amid these global challenges, can Europe’s education and skills agenda rise to contribute to the vision of a competitive Europe?

A mixed report card

The state of education and skills in the EU reflects stark contrasts. The 2022 PISA results show declining educational performance and growing inequality. While European students perform on par with American peers in reading, science, and mathematics, underachievement has risen sharply since 2018. Nearly 30 percent of EU students fail to meet minimum proficiency in mathematics, and 25 percent in reading and science. Among disadvantaged students, underachievement in mathematics is nearly 50 percent. The decline in top-performing students is particularly concerning, while East Asian states like Macao, Taiwan, Hong Kong, and Singapore consistently score at the top.

Higher education provides a more balanced narrative. Funded with €5 billion by the prior Commission, the Erasmus+ programme has led to significant investments in education quality and student mobility. But cracks show in the system. Regional disparities and brain drain weaken Europe’s higher education landscape, while the top universities in the US continue to attract the brightest minds. Meanwhile, China’s surge in higher education, backed by massive state investment, poses a growing challenge.

The tale of innovation is bleaker. The US is the undisputed leader in fields like artificial intelligence, supported by extensive public-private partnerships, a thriving venture capital ecosystem and world-class research institutions. China has emerged as a leader in electric vehicles, green technologies, and semiconductors, accounting for over 70 percent of global EV sales. Europe’s fragmented strategies, limited venture capital, and weak tax incentives hinder competitiveness.

A recent IMF report highlights the disparity: over the last decade, the EU’s annual venture capital investment averaged 0.2 percent of GDP, compared to 0.7 percent in the US. From 2013 to 2023, EU VC funds raised $130 billion, a stark contrast to the $924 billion raised in the US. This funding gap deepens Europe’s struggle to attract entrepreneurial talent and keep promising start-ups, widening its divide with global competitors.

Education and skills in the new Commission’s Political Guidelines

As we find ourselves at the outset of the new Commission, its education and skills agenda is still under development. The new Political Guidelines, as presented last summer, already show great ambition. The guidelines announce the creation of a “Union of Skills,” prioritising lifelong learning, teacher training, and cross-border recognition of qualifications to improve labour mobility. The proposed STEM Education Strategic Plan seeks to reverse declining performance in mathematics and science while encouraging women and girls to pursue careers in technology and engineering. Vocational education and training will be expanded to align skill-building programs with labour market needs.

Initiatives like the Skills Portability Initiative and the European Degree framework aim to harmonise qualifications across member states. Additionally, Youth Policy Dialogues and a Youth Advisory Board are designed to increase civic engagement among young Europeans. The guidelines also announce EU-wide inquiries and action plans on societal challenges like social media’s mental health impact, their addictive nature and cyberbullying.

However, these initiatives as outlined in the Guidelines, while important, risk being marginal without addressing deeper structural issues. The lack of cohesive investment strategies and the uneven distribution of resources across member states continue to undermine the EU’s capacity to achieve its ambitious goals. The success of the EU education and skills agenda lies in its ability to move beyond symbolic measures and deliver tangible outcomes that resonate with citizens and political leaders across EU member states.

Beyond symbolism

In his recent report on the future of European competitiveness, Mario Draghi outlines some promising proposals to move beyond symbolism. A key priority, he argues, is equipping Europeans with the skills needed to benefit from emerging technologies. This includes lifelong learning opportunities and job transitions facilitated by continuous education and retraining programmes. Crucially, Draghi stresses regional inclusivity in innovation and skills. Investments in education, transport, housing, and digital connectivity must extend beyond metropolitan areas to underserved regions, leaving no area behind. He also insists that the EU must guarantee a right to education and retraining for all workers, a crucial step in enabling them to adapt to technological advancements and transition into new industries.

While initiatives such as Horizon Europe have made strides, persistent gaps in venture capital and innovation scaling reveal significant room for improvement. Public investment in research and higher education quality must increase to address these challenges. The Erasmus programme, though successful, has not fully tackled the issue of brain drain. To counter this, cohesion policies could focus on making higher education in regions experiencing student emigration more attractive to talent from across the EU. Without addressing these disparities, Europe risks slipping further behind in global competitiveness.

The EU’s defining test

While the ambition of the von der Leyen Commission offers a hopeful vision, the stagnating educational outcomes, widening innovation gaps, and persistent regional disparities, highlight the scale of the task ahead. To compete globally, Europe must go beyond symbolic gestures or incremental reforms. Success hinges not on isolated initiatives but on a collective effort to invest and reform. The Draghi report and similar calls for deeper investment in education and innovation provide a roadmap for action, but their success depends on political will and public buy-in.

Ultimately, Europe’s gamble on education and skills is not just about competing in a changing world: it is about defining its role in it. Proposals such as the Union of Skills and investments into STEM have the potential to equip Europeans with the tools to thrive, innovate and lead. The stakes could not be higher, for the EU’s future competitiveness and cohesion depend on it.

This article is part of the Project “EU Forward” Social Europe runs in cooperation with the Friedrich-Ebert-Stiftung. It has been republished from Social Europe. Read the original article.