How will private universities unlock opportunities within Greece and beyond?
In March 2024, the Greek parliament approved a law authorising the establishment of private universities, along with the annexes of private foreign universities, with 159 votes in favour.
Given Article 16 of our constitution forbids the formation of universities by private individuals, this caused disruption across the higher education sector. But we must ask, how will Greece flourish without attracting foreign investment and global talent? How will we develop if we ignore the academic ambitions of our own people?
The Greek diaspora
For years, Greece has been held back by its highly centralised education system, with all decisions made by the Ministry of National Education and Religious Affairs. The vote to allow private universities occurred after years of pressure and frequent complaints from potential investors regarding the lack of skilled professional workers in the country, deriving from a bureaucratic model that does not allow for the development of the new fields of study necessary in today’s competitive business environment.
Opening the sector to private investment will not only slash red tape, but it will put Greece on level footing with the rest of Europe’s nations, creating a thriving academic atmosphere, fostering innovation and providing people with the skills for tomorrow.
According to UNESCO, 40,395 Greek higher education students currently study abroad, the highest number across all EU member states in proportion to population. But given that only one in three Greek students currently get into their top-choice university program, this is no surprise.
By radically transforming higher education, the Greek government is seeking to maintain talent within its borders and upskill its workforce, either by providing more university places through private institutions, or enabling students to enrol at foreign universities through subsidiaries based in Greece.
Opening the sector to private investment will not only slash red tape, but it will put Greece on level footing with the rest of Europe’s nations
The institutions are also expected to enhance research output; given that nearly half of Greek PhD holders abroad are open to returning, private universities could serve as a gateway back.
Crucially, it is important to note that these private universities are not-for-profit and will seek to open up outside of the capital, delivering public benefit without widening inequalities. In particular, for my hometown, Thessaloniki, the opening of new institutions will further build on the city’s existing thriving student population, most of which is currently derived from the Aristotle University, the largest institution in Greece and the Balkans.
International students
Before the new legislation, Greek universities faced serious challenges in meeting the rising demand from foreign applicants. In 2023, one institution received 400 applications from international students, with only 60 successfully converted into enrolments.
It is estimated that over the next five years, 16,400 students will be accepted, some of whom may stay after graduating and further boost the economy. Therefore, increasing capacity through private universities could allow Greece to develop as a global centre for international education; a thriving hub of cross-cultural learning that contributes to a diverse society.
Furthermore, university leaders rightly point out that not only will there be increasing opportunities for students from around the world to study in Greece, but the number of staff that are recruited from other countries will increase, further enriching Greek higher education.
Economic prosperity
At least 25 globally recognised overseas universities are now preparing to open campuses and offer graduate and postgraduate degrees in Greece across cities such as Athens and Thessaloniki. Among those top institutions are Harvard, Yale, Columbia and Stanford in the US, plus the University of Strasbourg in France, University College London in the UK and ETH Zurich in Switzerland. Their subject areas focus on industries that are thriving in today’s world, such as IT.
According to recent figures, the new non-state universities, expected to begin operating in the 2025/26 academic year, could generate €10.2 billion for the economy over five years, including €1.9bn in state revenue and 73,500 new jobs. As the number of Greek graduates increase, this will also create long-term benefits for the economy, positioning Greece as a top location for FDI and prompting investors to fund new ventures across various industries.
The government is also making money available for Greek state universities to collaborate with these new institutions, fostering collaboration between the public and private sectors, balancing the need for state involvement and the urgency to adapt to the globalised and modern world. Some €62m has been drawn up to create joint postgraduate programmes that are innovative, not already provided by public higher education institutions and should be provided on terms affordable for the society as a whole, with or without payment of tuition fees.
Greece’s future
A major objective of the New Democracy government is to attract foreign investment and prompt growth across the country. Opening the higher education sector to the global market will assist in achieving this goal; not only will private universities contribute to Greece’s economy in the short term, but they will diversify our society and upskill our population, fostering talent within Greece’s remits.
About the author: Christina Georgaki is the founder and managing Partner of Georgaki and Partners Law Firm based in Athens and Thessaloniki. With over 18 years of experience, she specialises in foreign direct investments and investment migration. Christina is also a teaching fellow at the Alba Graduate Business School and a member of the political committee of New Democracy, the governing party of Greece.
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