Is Europe’s Education System Ready to Compete Globally? Exploring the EU’s Bold Gamble for the Future

Can Europe’s education and skills agenda boost its competitiveness?

On December 1, 2024, Ursula von der Leyen began her second term as President of the European Commission, bringing a team focused on a stronger Europe. Yet, Europe faces tough global challenges, including conflict in Ukraine, unrest in the Middle East, and increasing competition from China. It raises an important question: Can Europe’s education and skills agenda help shape a competitive future?

The current state of education in Europe is mixed. The 2022 PISA results reveal troubling trends. While European students score similarly to those in the US in reading, science, and math, there’s a rise in underperformance. Nearly 30% of EU students don’t reach basic math skills, with 25% falling behind in reading and science. Disadvantaged students face even greater challenges, with nearly half failing to meet math benchmarks. In contrast, East Asian countries consistently excel in education.

On a brighter note, Europe’s higher education landscape shows promise. The Erasmus+ program, funded with €5 billion, has greatly improved student mobility and education quality. However, issues like brain drain and regional inequality remain. Top US universities continue attracting talent, while China’s significant investment in higher education poses growing competition.

When it comes to innovation, Europe struggles. The US leads in technology sectors like artificial intelligence, supported by strong public-private partnerships and venture capital. China dominates the electric vehicle market, making over 70% of global sales. Europe’s fragmented approach and limited funding hinder its ability to compete.

A recent IMF report highlights the contrast in venture capital investment: the EU averaged just 0.2% of GDP over the last decade, while the US reached 0.7%. From 2013 to 2023, EU venture capital funds raised $130 billion compared to the US’s $924 billion. This gap makes it harder for Europe to attract startup talent and innovate.

The new Commission has ambitious goals for education and skills. Their plans include creating a “Union of Skills” to promote lifelong learning, enhance teacher training, and improve job mobility by standardizing qualifications. They also aim to boost STEM education to encourage more women and girls into tech careers and align vocational training with job market needs. Initiatives like the Skills Portability Initiative and European Degree framework aim to make qualifications more comparable across member states.

Despite these plans, there’s a risk they might not make a real impact without tackling deeper issues. A lack of cohesive investment strategies and uneven resource distribution could undermine these initiatives. The real success of the education and skills agenda lies in making these ideas work for everyday citizens and gaining support among political leaders across Europe.

In his report on Europe’s competitiveness, Mario Draghi emphasizes the need for equipping Europeans with the necessary skills for emerging technologies. He calls for continuous education and retraining, stressing that investments must reach all regions, especially those underserved. Draghi suggests a right to education and retraining for all workers, allowing them to adapt to changing job landscapes.

While programs like Horizon Europe show potential, gaps in funding and innovation scaling highlight the need for improvement. Public investment in education and research should be increased. Although Erasmus is successful, it has not resolved issues like brain drain. Cohesion policies should focus on making higher education more attractive in regions losing students to more urban areas to keep talent within Europe.

Europe faces a critical challenge. The ambitions of the von der Leyen Commission shine a light on the road ahead, but declining educational outcomes and widening innovation gaps make the task daunting. To truly compete on a global stage, Europe must move beyond mere gestures to meaningful reforms and investments. The effectiveness of initiatives like the Union of Skills and STEM investments will depend on both political will and public support.

In short, Europe’s commitment to education and skills is vital. It’s about preparing for a changing world and defining Europe’s place within it. The right actions can provide Europeans with the tools to succeed and innovate, which will be crucial for the future of the continent.

This article is part of the Project “EU Forward” that Social Europe runs in cooperation with the Friedrich-Ebert-Stiftung.