New private universities seen drawing investment, student interest

Greece is set to inaugurate its first private universities later this year, a major milestone in the country’s efforts to open its higher education system with the aim of attracting foreign students and stemming the outflow of young Greek minds abroad.

The first batch of four universities have been announced with more expected to follow. According to a recent study by the Institute of Fiscal and Economic Studies (IFES), the reform – once fully operational – could generate major benefits for Greece over the next five years.

By 2030, IFES estimates that the creation of private universities in Greece could yield €10.2 billion in benefits for the Greek economy, produce €1.9 billion in revenue for the government, and create up 73,500 jobs. It would also stem the outflow of €1.2 billion worth of tuition fees that is paid each year by 40,000 Greek students studying abroad. In turn, Greece could attract as many as 16,400 students from overseas by the end of the decade and collect as much as €286 million in tuition fees over the next five years.

The new private universities “can stem the brain drain and provide an opportunity for the repatriation of academics who would enhance the country’s human resources, addressing the significant gaps in labor demand that exist today,” the report notes. It adds: “by stemming the outflow of expenditures from Greeks studying abroad, while also attracting foreign students, a significant improvement in the current account balance is expected.”

The National Authority of Higher Education, which is overseeing the rollout of the new, private universities has also approved 74 joint postgraduate programs between Greek and foreign universities. Those programs will be supported with €94 million in funding from both European Union and Greek resources.