What the Federal Government’s Budget Decision Means for Universities*

OTS uniko, 19.10.2026

The Federal Government has decided to allocate EUR 16 billion to universities for the 2028–2030 Performance Agreement period. From the perspective of the Austrian Universities Conference (uniko), this figure must be interpreted as follows:

The savings contributions universities made during the current Performance Agreement period in order to consolidate the federal budget and finance the FTI Pact have now been structurally deducted from their funding base. It had been promised — including publicly — that these contributions would not reduce the baseline for the 2028–2030 Performance Agreement period. However, the press materials distributed by the government last Saturday indicate the opposite.

Funding for IT:U (EUR 200 million) and for physicians’ salaries (EUR 270 million) was added on top of the budget originally earmarked for universities when the current Performance Agreement was concluded. These expenditures are now to be financed from the EUR 16 billion university budget.

This effectively amounts to a nominal cut in university funding for the years 2028–2030.

Need for cuts of ten to fifteen per cent

In addition, no inflation adjustment has been provided for. Based on current WIFO forecasts, inflation will amount to approximately ten per cent over the three-year period. Universities must therefore assume a minimum need for savings of ten per cent and, in the worst case, cuts of up to 15 per cent.

Any imprecision in the figures is due to the fact that uniko, too, depends on the data provided by the ministries — and that this information is not always reliable or internally consistent. For example, as of Monday afternoon, universities had not received anything in writing regarding the 2028–2030 budget framework, apart from a vague press document containing questionable figures.

What does saving at least 10 per cent mean?

Personnel expenditure accounts for almost 70 per cent of spending across all universities. The overwhelming share of the savings will therefore inevitably affect staff. With currently 68,000 employees, this could mean up to 6,800 jobs.

It should also be noted that leaving positions vacant after retirements has consequences — particularly for those who remain. They will have to fill the gap and take on the work of retiring staff. The savings measures will affect early-career researchers most of all: they will not be able to move up, have their contracts extended, or be hired in the first place.

There could also be drastic cuts to non-staff expenditure. The Center of Physics in Graz is currently being newly constructed, but funding will be lacking to equip it with modern research infrastructure. A fine new building may have to remain unused.

What consequences of the budget cuts are foreseeable?

The impending cuts will already become apparent in 2027. Universities will no longer be able to hire staff, knowing that this would generate ongoing costs in subsequent years. Nor will they be able to make investments that entail follow-up costs.

The following consequences are already foreseeable:

• Degree programmes will be discontinued.
• Sought-after — and therefore expensive — researchers in experimental physics and quantum physics will not be able to be recruited as planned.
• Initial reports are emerging of researchers from abroad withdrawing their applications or declining offers.
• Funding for equipment will be lacking.
• A shortage of early-career professionals needed to implement the Federal Government’s industrial strategy is foreseeable.
• A shortage of young talent is also expected in culture, wind music, orchestral music more broadly, and teacher education.
• The University of Veterinary Medicine Vienna will be forced to reduce its training provision in the field of livestock medicine, with consequences that will be felt in agriculture.
• Start-up ecosystems cannot be supported as intended.
• Universities will no longer be able to secure EU research funding at current levels because the necessary core funding will be lacking.
• The excellence clusters are under pressure.
• The discussion on digital sovereignty will become obsolete without sufficient young talent and research capacity.
• Austria as a location for science and research will lose competitiveness overall.
• Quality of education: Having to educate the same number of students with less funding will inevitably dilute quality and worsen staff-to-student ratios. With less funding, universities simply cannot deliver the same level of performance.

Universities are calling for the higher education strategy process to be used to unlock efficiencies across the entire higher education system. Rectors are responsible for their individual institutions, but reforms to the overall system are the responsibility of the Minister for Science. uniko has repeatedly put forward proposals in this regard and strongly demands that they be heard and incorporated into the process.

uniko calls for joint protest with the Austrian Students’ Union on Thursday

In light of this disastrous budget, universities are calling on all concerned to join the protests organised by the Austrian Students’ Union (ÖH) next Thursday, 22 October.

* Press release uniko, 19.10.2026