1. The necessary next steps in Europe's education policy Univ.-Prof. Dr. Hardy Hanappi Ad personam Jean Monnet Chair for Political Economy of European Inegration University of Technology of Vienna www.econ.tuwien.ac.at/hanappi/ hanappi@tuwien.ac.at

2. Overview Recent crisis dynamics Implications for Europe‘s Education Structure Necessary Education Policy Central Europe: Austria and Hungary

3. Welfare in the Long-run

4. Recent global capital accumulation

5. Motor of welfare increases

6. Divergence in Europe 1

7. Divergence in Europe 2

8. Divergence in Europe 3

9. Stagnating Wage Growth – Exploding Credit

10. European Education Structure A rather stable structure – challenges from enlargement

11. Impact on education levels Source: OECD

12. Some Key Findings 1 In 2010, the average employment rate for individuals with a lower secondary qualification was 65.3% for men and 46.9% for women across EU21 countries, while the average employment rate for individuals with a tertiary-type A (largely theory-based) qualification was 88.0% for men and 81.1% for women. In faster changing economic environments education has to provide more general capabilities.

13. Some Key Findings 2 Europe is the preferred destination for students studying outside their country, with EU21 countries in Europe hosting 41% of all international students. Within the share of foreign students enrolled in EU21 countries, 76% of students come from another EU21 country. Eliminating language barriers and legal difficulties is an important next step for European education policy.

14. Some Key Findings 3 Redesign of European labour organization structure (labour time and life time schedules including public child care etc.) is an integral part of education design. A central fiscal authority of the EU is necessary to enable these deep structural changes. Europe’s special capability as knowledge producer can secure its position in the global division of labor in the long-run!

15. Austria and Hungary 1 Can build on a great historical tradition – but recently experience a sharp economic divergence. Austria faces a lack of tertiary education: need for finance. And more and better young teachers.

16. Austria and Hungary 2 Hungary is in a desolate economic situation and needs to overcome isolation – by opening to EU support. Both should join a common EU vision of guaranteeing the reproduction of a sustainable welfare level – supported by a common education system

17. Hungary and Austria Longer education, later retirement Substantial shift in government expenditure components: Less business and agriculture subsidies, more education expenditure A Quantum Jump in A-H cooperation

18. Thank you for your attention !