Eindhoven University of Technology wants to continue to grow. To realise these ambitions, the university will take greater financial risks in the coming years.
Anyone who looks at the financial forecasts for the next four years will see that the TU/e financial prospects will drop significantly in the coming years. The lists that give an idea of the financial health of the university cannot help but notice this trend. Until 2023, TU/e generally performed average to above average on these lists,
compared to other Dutch universities.
From 2023, however, the university dropped to the bottom echelons, for example in terms of liquid assets – the amount of money the university has in the bank, with which, for example, salaries must be paid. The university will also suffer in terms of liquidity – the ability to continue to meet payment obligations in the short term..
More extreme
In general, it appears that all universities in the Netherlands find themselves in financially more difficult circumstances. But the financial outlook of TU/e seems to be more extreme than at most other universities.
According to TU/e, this is partly due to high inflation, higher energy costs and a strong collective labour agreement increase of 9 percent, which is also not compensated by the government. In addition, the university invests in strategic research themes, and this is done with the positive financial results that the university has achieved in recent years. This resulted in significant reserves being built up, which improved the university’s liquidity.
Growth
TU/e states that it is aware of the risks but has sufficient options to make financial adjustments when necessary. The university wants to continue to grow, both in terms of research and student numbers.
Inflation
Finally, the university says it hopes that the way the university is financed will change. The Universities of the Netherlands – the branch organisation of universities in the Netherlands – is discussing this with the outgoing cabinet. Universities must be compensated for the high inflation with a new financing method.
Source: www.studio040.nl
Translated by Yawar Abbas
