SPAIN: Universities hit by sweeping cuts

Even before the global financial crisis struck, Spain was confronting an economic recession. It was the effects of that downturn that has led to universities in Madrid facing the threat of major cuts that could leave them unable to pay staff wages. Their main funder, the regional government of Madrid, cut its block grant for fixed running costs by 30% late in September without prior notice. Now universities in Valencia are also threatened by similar action.

The rectors of Madrid's six state universities affected are negotiating with the regional Education Minister Lucía Figar to try to reverse the decision. They have been joined by a further five state universities from the region of Valencia facing the threat of a 25% cut in 2009.

The cuts took universities in Madrid by surprise. With no forewarning, on 30 September the regional government simply transferred 30% less than the usual monthly amount and told the rectors at a meeting the following day that these cuts would continue at least until 2009.

On 13 October, the regional government's Finance Minister Antonio Beteta suggested the six universities might consider taking out a loan, guaranteed by the authorities, to make up the shortfall. Two days later, the regional government softened its stance and agreed to pay the full amount for October, although the cut in September's grant still stands. Negotiations between the two parties have been underway ever since.

Madrid's conservative regional government has blamed the left-leaning central government for obliging it to make cuts in university funding by holding back EUR418 million (US$534.5 million) earmarked for the region's health services. The regional government is already heavily in debt to the tune of EUR10 billion, according to the Bank of Spain, and has said it will look for savings in other areas of public spending.

Three trade unions, representing the majority of the 24,000 academic and administrative staff employed in Madrid's state universities, are planning protests. In a joint statement, they accused the regional government of arch liberal Esperanza Aguirre of "using the economic crisis as an excuse for these cuts, when her style of government clearly shows her aim is to privatise universities".

The reaction of the rectors has been more muted. All are avoiding making any public declarations while negotiations with the regional authorities are underway. But, in a joint statement issued in mid October, rectors of the six universities pointed out that their institutions had scrupulously met all targets for savings set in earlier funding agreements.

"It is therefore not possible to ask the public university system of Madrid to make further cuts," they said.

rebecca.warden@uw-news.com