Ellen van Schoten, vice-chair of the Executive Board, describes the cuts as ‘unprecedentedly harsh’ and a ‘very bad development’. “This government claims to prioritise innovation, so how can it justify cutting investment in people who advance the knowledge economy? And as a leader, I find it very odd that just two years ago, we received extra funding, only for it to be taken away again. I find that very upsetting. Fortunately, thanks to the preparations we’ve made, we’re in a solid financial position. It won’t be easy, but we can handle it.”
International faculties under pressure
Erasmus University, along with other universities, is considering ‘actions’ and possible legal steps against the government. “We’re already making our opposition known through the media.” Van Schoten is reluctant to elaborate on legal action, but it ‘remains an option’.
Faculties with a large international student body – such as RSM and ESHCC – are under significant strain. Institutes like ISS and IHS, both impacted by cuts to development cooperation funding, are also facing challenges.
Reorganisations and forced redundancies are ‘not out of the question’, according to Van Schoten, but where and when remains unclear. “Of course, we’re trying to avoid this as much as possible. Whether it will be necessary, and where, is still uncertain. Each department is now assessing what measures are required. In some areas, we’ve already limited external hiring, we’re not renewing temporary contracts, and some vacancies are either not being filled or only after a delay.”
Discontinued compensation
In 2025, a year earlier than expected, the university will lose the starter and incentive grants. These grants are intended to give academics better chances of securing permanent positions and conducting independent research. Scientists who have already received such grants will not be affected, but after 1 January, no new grants will be awarded.
The university will lose 39 million as a result of these cuts. Along with Maastricht and Tilburg, Erasmus University is disproportionately impacted. These three relatively young universities receive additional funding because they get less money from the Ministry of Education than the older universities. Despite lobbying for structural compensation, the universities have yet to succeed.
EUR’s financial setbacks at a glance
- End of starter grants: 25 million
- End of incentive grants: 14 million
- Long-term student fines: amount unknown
- Fewer international students: 3 to 6.5 million
- Expected student decline: 8 million
Long-term student fines
In 2026, the university will face fines for long-term students, which is expected to save the government 95 million euros annually, rising to 280 million euros in the following years. The government also aims to save comparable amounts through a new law reducing the number of international students. The actual financial impact on Erasmus University depends on how the law is implemented, which remains unclear. Initial estimates suggest a loss of between 3 and 6.5 million.
There are serious doubts about the effectiveness of the measure, even within the Ministry. The university is no longer actively recruiting internationally. European students can still freely enrol in Rotterdam, so they are likely to keep coming. Students from outside Europe are important to universities, as they pay higher tuition fees. The government’s plans do not include specific targets. If the financial goals aren’t met, the Minister of Education, Eppo Bruins, has already announced that further cuts will follow.
Tackling one challenge after another
EUR’s measures at a glance
- 5 per cent reduction in funding for services
- 3.5 million euros cut from strategy
- Ceasing expensive educational activities
- Repurposing existing buildings for student housing
- Postponing or cancelling real estate projects
- Expanding flexible workspaces
- Smarter use and rental of facilities
- Savings on software licences
These cuts add to the university’s existing financial concerns, driven by rising wages and inflation. The 2024 deficit is expected to be between 6 and 9 million euros. Last year, the university already posted a 17.5 million loss. Additionally, the Ministry expects a decline in student numbers, resulting in an annual 8 million euros funding reduction.
Van Schoten aims to tackle the cuts ‘one challenge at a time’. Initial measures were introduced earlier this year, with the budget for all services reduced by 5 per cent, and 3.5 million euros cut from strategic plans. The university plans to present a balanced budget for 2025, ensuring any overspending is offset by savings elsewhere.
Student housing in educational buildings?
The university is also reviewing its educational offerings. Loss-making courses may be ‘rationalised’, meaning students could be placed in larger groups or certain programmes discontinued. “But we will always phase these out properly, allowing students to complete their programmes.”
Van Schoten is also considering postponing or cancelling real estate projects. While the major renovation of the Tinbergen building will go ahead, other projects are under review. These include the demolition of the Q-building, N-building, and the old sports building, as well as the renovation of Mandeville and Van der Goot. “We’re looking at other options for these buildings, such as repurposing them as student housing.” A new building could also be constructed on the vacant lot next to Langeveld. No final decisions have been made by the Executive Board.
Flexible working
Van Schoten also plans to save money by using existing buildings more efficiently. “With smarter room planning, we may be able to organise more internal activities, reducing the need to rent space in the city. Or we could rent space to other organisations.” The university is also expanding the use of flexible workspaces, including in the Erasmus School of Economics building.
Additionally, ICT is expected to save money by standardising software. The university currently pays for duplicate licences for the same software or for different programmes with overlapping functions.
‘Financially sound’
Despite the precarious situation, Van Schoten reassures staff. “We are financially sound at present, so we won’t be making emergency cuts of 30 million euros overnight. We have time, and we’re working on plans to make smarter choices. We want to communicate these plans clearly and regularly, in consultation with all parties. Staff are encouraged to share their ideas with their supervisors or through the participatory bodies.”