Research and higher education in a federal syste: The need for a European University Charter

The need to increase the level of resources channeled to basic research and higher education is widely acknowledged. These activities have all of the characteristics of collective or public goods and thus need to be primarily funded from public resources. Traditional economic theory suggests that the responsibility for financing research should be given to the authority with the widest jurisdiction or the one that best corresponds to the natural dissemination of research outcomes. More recent developments in economic theory can also help identify ways of improving the governance of universities. Finally, securing better financing for the upper levels of higher education requires the adoption a European University Charter. This would guarantee adequate and stable funding in the medium term and allow the sector to achieve its mission. This charter should also help universities clarify their governance methods.