Higher Education Pact

The institutions of higher education in Germany are facing great challenges. The number of people qualified to enter higher education will rise considerably up to 2020. At the same time, the pressure of international competition means that institutions of higher education must heighten their research profile. The Federal Government and the Länder have agreed on a Higher Education Pact in order to maintain the efficiency of the institutions of higher education and at the same time enable them to cope with an increasing number of new entrants. This means that the universities will be able to admit a total of 91,370 additional new entrants by 2010 compared with the figures for 2005. Universities will also receive financial support for their research activities in the form of one-off payments.

The efficiency of its research and the qualifications of its workforce are key factors determining a country's social and economic development. Labour market demand for university graduates is growing and will continue to do so in future. At the same time, the number of people with Abitur applying for a place in higher education will also increase over the coming years.

Institutions of higher education are a key element in the German research environment and are thus also important for the country's economic performance. Young scholars acquire their qualifications at institutions of higher education. Their involvement in research explains the special position of institutions of higher education in the research system.

The Federal Government and the Länder intend to meet the challenges of higher education together. They have therefore agreed a Higher Education Pact to secure training opportunities for the next academic generation and ensure the efficiency of research. On 14 June 2007, they agreed on the "Administrative Agreement between the Federal Government and the Länder on the Higher Education Pact 2020", which paved the way for the first phase of the programme from 1 January 2007 to 31 December 2010. This meant that the measures could already take effect with the beginning of the 2007/2008 winter semester. First signs of success are already visible. We have stopped the downwards trend in university admissions. The 2007/2008 academic year showed an increase in the number of young people entering university for the first time in several years.

The Higher Education Pact 2020 covers the following areas:

1. Programme line "Teaching"

The Länder will admit a total of 91,370 additional new entrants at their institutions of higher education. The Federal Government will provide funding of 11,000 euros per new entrant, divided up over a period of four years - in other words funds totalling approximately 565 million euros by 2010. The Länder are responsible for ensuring overall funding. The distribution of federal funds takes into account the different situations in the various Länder.

• In view of their particular demographic situation, the new Länder are receiving a lump sum payment of 15% of the annual funds provided by the Federal Government for the years 2007 to 2010. In return, they undertake to ensure that the number of new entrants remains constant in future years on the basis of the figures for 2005.
• The Länder Bremen and Hamburg together are receiving 3.5% of the funds granted by the Federal Government under the proviso that they ensure that the number of new entrants remains constant on the basis of the figures for 2005. Entrants in excess of this number will be financed in the same way as in the other Länder.
• Berlin is receiving a lump sum payment of 4% of federal funds and in return undertakes to ensure that an average of 19,500 new entrants begin their studies in Berlin in the years 2007 to 2010.

The federal funding is granted as an advance payment: the difference will be settled with effect from 2011 on the basis of the actual number of additional new entrants. This means that the Länder have planning certainty and ensures that the federal funds do in fact go to those Länder where additional young people are beginning their studies.
When making use of the funds, the Länder will place special emphasis on increasing the number of places for new entrants at universities of applied sciences, raising the number of women in professorships and other positions, and creating additional positions.

2. Funding one-off payments

The German universities must heighten the international profile of their research still further. They must be able to increase the intensity and the excellence of their research whilst at the same time tackling the additional challenges posed by an increase in the number of university students. The second pillar of the Higher Education Pact, "Financing One-off Payments" (Overhead Funding), takes this aspect into account: University research is being strengthened in the long term through the introduction of full-cost funding for research projects. The projects funded by the German Research Association (DFG) will receive increased funds amounting to 20% of funding. The Federal Government is bearing 100% of the costs incurred during the years 2007 to 2010. Overhead funding is being granted for special research programmes, research centres and post-graduate research groups with effect from 2007, and for other new research projects funded by the DFG with effect from 2008.