Budget Dispute Over Universities

Now there is a threat of a collapse in medical education and knockout exams

A budget cut would have “serious consequences,” officials at the University of Vienna fear.(Bild: APA/ROLAND SCHLAGER)

“I hope the federal government comes to its senses,” warns Peter Riedler, rector of the University of Graz. Otherwise, he says, universities will run out of money, and there will be trouble ahead, such as pass-or-fail exams. In fact, after a special increase in the previous period, the university budget is now being brought back to normal levels.

After pensioners, it’s now the universities’ turn. At universities, too, budget increases are no longer as generous as they used to be. Protests are therefore inevitable. However, the agreed-upon university budget is secured through 2027; funding will only be reduced starting in 2028. The cuts are being made at a very high level.

“The quality of study and teaching, as currently offered, is seriously at risk,” warns Rupert Sausgruber, rector of the Vienna University of Economics and Business.

The University Budget

• The federal government is planning a budget of 15.5 billion euros for the period 2028–2030.
• However, according to the Austrian University Conference (uniko), universities would need as much as 18 billion euros just to maintain current operations.
• For the current performance agreement period (2025–2027), universities received 16.5 billion euros.

The planned university budget would have dramatic consequences; according to the Universities Conference, as many as one in five university jobs would be at risk. “Vacant positions could not be filled, and on top of that, staff would likely have to be laid off,” fears Stefan Koch, rector of Johannes Kepler University Linz. 

A budget cut would have “serious consequences,” officials at the University of Vienna fear.(Bild: APA/ROLAND SCHLAGER)

Return to Knockout Exams
Students would suffer as a result, because the range of courses offered would shrink. At the Vienna University of Economics and Business, they would then have to resort once again to the dreaded knockout exams, says Rector Sausgruber.

In some degree programs, however, more students could simply be seated in a single class; for lab courses, though, that’s not so easy—the rooms have limited capacity. For students, this means they would likely have to wait longer for a spot in these courses, which would extend the duration of their studies, says University of Graz Rector Riedler.

“Serious consequences” for Austria
Students would also stay at universities longer because it would be significantly harder to find a supervisor for their thesis. As a result, skilled professionals would enter the job market later—“which Austria urgently needs,” criticizes the University of Vienna. This would have “serious consequences” for Austria as a center of business and science.

The university hospitals in Vienna, Graz, Linz, and Innsbruck would also be affected by budget cuts. Medical care would suffer a “collapse,” warns uniko. For example, the Vienna General Hospital (AKH) “currently provides about one-third of medical care in Vienna.”

Talks are ongoing
The universities know that the state must cut costs, but “the real drama,” according to Riedler, is that the cuts are supposed to be so radical. He hopes “that the federal government will reconsider.” There may still be some room for negotiation—talks with the ministry are ongoing, the universities said.

The union representing general university staff (BMFWF) and its branches are also sounding the alarm and fear that their working conditions are at risk; after all, they “ensure the daily operation of the universities.”

Mandatory attendance for the demonstration suspended
The universities, together with the Austrian Student Union (ÖH), unions, and employee representatives, have announced demonstrations for May 27. At the Vienna University of Economics and Business, attendance is mandatory for students in many courses, but this requirement is being suspended for the demonstration—such is the outrage...