Germany

Brandenburg’s economy is undergoing structural change, which opens exciting new prospects for highly skilled workers. The state has intensified efforts to diversify the economy towards cleaner and more knowledge-intensive industries, including the development of advanced manufacturing, spill-over effects from the start-up scene in Berlin, fostering entrepreneurial activities at its own higher education institutions, promoting innovative places for working and living, and phasing out of coal production in favour of next-generation technologies. As the engine of skills development and research, the higher education system will play an important role in helping the state unleash these opportunities. The German State of Brandenburg has therefore entrusted the Organisation for Economic Co-operation and Development – in close collaboration with and supported by the European Commission’s Directorate-General for Structural Reform Support – with the development of recommendations on how to enhance the visibility of its institutions’ programme offer, align this offer with the skills and innovation demand, and make it more attractive to prospective students from the state and beyond.

Ageing populations and rising skill demands have heightened expectations that higher education systems will widen their offer of continuing education and training (CET) for adults aiming to renew or augment their skills at an advanced level. CET is becoming increasingly important for maintaining a highly skilled workforce also in Germany, and particularly in the state of Brandenburg. However, Brandenburg’s public higher education institutions have so far been only marginal providers. To expand their offer of CET, they would require more legal certainty about the use of public funding in light of European Union (EU) state aid policy. EU state aid policy ensures public subsidies (state aid) are not used by state agencies to crowd out markets (economic activity). There are no clear EU, federal or state-level directions about whether CET is a non-economic activity and thus exempt from EU state aid rules. This report analyses the reasons for this legal uncertainty and provides recommendations to the state government and public higher education institutions in Brandenburg about how to clarify the status of continuing education and training as a state-aided activity. It also proposes pointers for interpretation and future reform of the EU framework on state aid, and provides impulses for policy action in other German states and at the federal level.