Iceland

A number of regulations constrain institutions in their financial autonomy. Block grants are split into teaching and research categories, between which funds are not moved. Money can only be borrowed through companies owned by universities, and parliament must approve the sale of university-owned buildings. Public universities cannot charge tuition fees.

Institutions are more flexible in deciding on staffing policies. Salary bands are negotiated and dismissals regulated, but universities freely decide on recruitment procedures and promotions.

As regards academic affairs, universities negotiate overall student numbers with the government and are only able to open programmes in previously defined fields of study. On the other hand, institutions design their own degree content, set their admission criteria at both Bachelor and Master’s level and can freely select quality assurance mechanisms and providers.

In Iceland an increase in university autonomy has been accompanied by growing responsibilities and accountability requirements. This is seen to have had positive results, such as the acquisition among senior university staff of specific skills, particularly concerning financial and budgetary matters.