Freie Universität Berlin Faces Significant Budget Cuts of EUR41 Million
The impact of recent budget cuts imposed by the Berlin Senate has become evident, with the Freie Universität Berlin (FU) announcing it must reduce its expenditures by EUR41 million in 2025. This figure has been officially disclosed after a period of uncertainty regarding the extent of the financial constraints facing the city's higher education institutions.
As one of the leading universities in Berlin, alongside Humboldt University and the Technical University, the FU has expressed serious concerns about the repercussions these reductions will have on its ability to maintain quality in both research and education. The university's administration highlighted that the cuts could fundamentally undermine its operational capacity, potentially affecting the entire city for years to come.
The total savings being mandated by the Berlin Senate amount to EUR250 million across the sectors of science and health, with EUR122 million specifically allocated to the state universities. The Charité, a major university hospital, is also facing an additional EUR20 million in cuts.
The budgetary constraints are not limited to the current year; projections indicate that the universities will continue to face financial reductions in the following years, with expected cuts of EUR81 million in 2026 and EUR84 million in 2027. Over the three-year period, these reductions are projected to accumulate to approximately EUR1 billion for the sector.
A significant portion of the 2025 budget reductions will directly affect academic funding, with over EUR100 million earmarked for cuts to university contracts that govern state subsidies. The universities are contemplating legal action in response to what they view as breaches of these agreements.
In addition to funding for academic programs, several scientific initiatives and construction projects are slated for reductions or complete elimination, further straining the universities' resources. Some infrastructure improvements may need to be financed through loans moving forward.
To mitigate the impact of these fiscal challenges, the FU plans to utilize half of its savings from existing reserves. The remaining reductions will necessitate immediate actions that will inevitably affect both staff and students. The university has noted that personnel costs are a significant aspect of its budget, and as such, hiring for administrative positions will be limited and only pursued under exceptional circumstances.
All academic departments and central institutes are required to achieve a 6% savings target on their personnel budgets, which will likely impact many temporary research positions. Decisions regarding the filling of positions for retiring professors will be made on a case-by-case basis by the university's leadership.
While the university aims to avoid further reductions in operational funding, it emphasizes the need for careful financial management. The FU also plans to limit the amount of unspent funds that can be carried over into the next fiscal year, ensuring a more stringent oversight of budget allocations for excellence and collaborative projects.
In 2025, an evaluation will be conducted to assess the overall financial health and spending practices of the university.