In several EU countries, the body designated with decision-making in higher education institutions (HEI) is distinct from the academic body or the supervisory body. In Malta and France, the decision-making body includes external stakeholders and oversees and administers the activities of the institution and the Rector. Furthermore, Malta is among only a few other countries where there is no supervisory body - HEIs in most countries have introduced a supervisory body composed mainly or solely of external stakeholders from industry, commerce and civil society.

A study into the governance of higher education institutions was published last week by Eurydice, the EU's information network on education. The study looks into public and government-dependent private HEIs in 30 EU countries and places a lot of importance on the modernising of HEIs in terms of the structures of governance, but also refers to the methods used to fund these institutions, their responsibilities with regards to the academic staff, the ongoing national debates in some countries with regard to the strategic policies of higher education, and the involvement of stakeholders.

"This level of education is called upon to make a significant contribution to achieving the Lisbon objectives in terms of growth, prosperity and social cohesion. The European Union's Education and Training 2010 work programme clearly emphasises the importance of modernising higher education institutions and the importance of the reforms encouraged by the Bologna process, with a view to establishing a European Higher Education Area," Education Commissioner Ján Figel explains.

The Education Commissioner calls on member states to prioritise the modernisation of HEIs and reforms encouraged by the Bologna process: "Higher education must achieve a level of quality that stands the test of international comparison, improve governance and accountability, increase its funding and diversify its sources of funding. These major aims presuppose changes in higher education that have to be among the top priorities on the policy agenda and in the national strategies of European countries."

It is within this process of change that the study gains particular importance, as it enables states and their institutions to compare the policies of other countries and their updating process. To enable this function, the study refers to five broad areas: strategic policies, structures of higher education governance, public and private funding, and academic staff.

The report observes that the majority of countries are implementing or are in the process of introducing specific policy documents that outline long-term national strategic priorities for ensuring the financial sustainability of the higher education sector. In Malta's case, the policy for higher education funding is outlined annually in the budget.

On the other hand, the report states that there seems to be fewer comprehensive strategic policies for academic staff than for funding.

With the exception of Malta, Germany, Ireland, Cyprus and Luxembourg, almost all European countries use funding formulas to calculate the size of public grants to HEIs for teaching and/or ongoing operational activity and, in certain cases, research. In Malta, the public grants are based on a budget estimate submitted by the institution, which outlines its financial needs for the upcoming year based on the number of staff and enrolled students.

The report explains that loans, revenues from property, sponsorship of posts, investments and the creation of companies are common in many countries, although in some of them, these types of income sources are either not allowed or they are subject to restrictions. On the other hand, the vast majority of European countries have implemented at least one type of incentive to encourage HEIs to obtain private funding.

As to the recruitment process, in most countries this is based mainly on a joint effort between the institutions and the authorities. Only five countries - including Malta - enjoy particularly noteworthy institutional autonomy in terms of recruitment.

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