EUR Holding 1995 - 2020

Origin

The two-fase structure for higher education decree issued in 1982 by the Dutch House of Representatives as the Wet Tweefasenstructuur wetenschappelijk onderwijs marks the origin in the run-up to establishing EUR Holding. From that moment on, Dutch universities were no longer allowed to finance their higher vocational training programmes with direct government funding, the so-called 'first flow of funds'. But when there is a will, there is way! University faculties, departments and even individual professors turned to creating foundations, which provided an alternative funding source, enabling them to maintain this form of educational programmes. This practical solution certainly ensured that vocational training programmes continued to be offered, but not entirely without difficulties.

The downside of organising educational training programmes in this way was raised by The Confederation of Netherlands Industry and Employers (VNO / NCW). This organisation, which represents the interests of Dutch businesses pointed out that the educational activities offered by the foundations were in fact subsidised by the universities, a problematic construction in its view, which eventually led to the 1994 report by the Netherlands Court of Audit. The report’s conclusion was clear: there was indeed a ‘wild west’ scenario within the academic world. The foundations devolved a large portion of costs upon universities, while the universities in turn did not sufficiently charge foundations for expenditures. In summary, the universities had too little control over the ins and outs of the foundations’ expenses.

Something had to be done, including in Rotterdam, where only a small number of active foundations could be traced in the consolidated financial statements of the EUR.

The 1995 House 

The Erasmus University Rotterdam responded to the problem by founding EUR Holding in 1995. The foundations all transmuted into subsidiaries under one same roof. This new house, the parent company, was designed so that the EUR acquired 100% of the shares. From then on, EUR Holding became the guardian in the financial management of these subsidiaries.

Furthermore, this route could ensure high quality academic training by linking private educational companies and research institutes directly to a faculty. In this scheme, the dean of the faculty is mainly responsible for the curriculum, independently of representative shareholders on the Supervisory Board of the relevant private limited company.

The Holding was explicitly intended as a small management organisation and remained as such over the years. Its director appoints the Supervisory Board Directors and the Director of the private limited companies in accordance with the guidelines laid down in the articles of association.

Developments

The EUR Holding expanded over time with an increased number of private limited companies and also other institutions with research, consultancy and educational activities joining the effort. One example is the Risbo, a research and training institute linked to the Erasmus School of Social and Behavioural Sciences, which conducted policy-oriented research largely commissioned by third parties. Another example is the Education Expertise Centre which provided training to EUR teachers and consultancy services to faculties and the university’s Executive Board in addition to assignments for third parties. The Erasmus University Rotterdam Accounting, Auditing & Controlling (EURAC) also continued its accountancy activities in a new limited company structure, offering certified training, such as chartered accountancy courses.

The transition did not go smoothly for every foundation. The International Institute of Housing and Urban Development Studies (IHS), a foundation offering education and training in the form of ‘capacity building’ projects to young civil servants in developing countries, was confronted with great financial difficulties due to unforeseen circumstances. With a helping hand from the Municipality of Rotterdam and Erasmus University Rotterdam, the foundation was able to make a fresh new start as a subsidiary within EUR Holding. The company has been striving ever since. 

2003 – Erasmus Unversity Medical Center (Erasmus MC)

The year 2003 brought about a massive change, when the EUR Holding turnover decreased by almost thirty percent, from 29 million to 21 million euros. The obvious explanation behind the fall in revenue was that the management of the Faculty of Medicine and Health Sciences had been transferred by the EUR Executive Board to the Erasmus MC Executive Board. As a consequence, the companies linked to that faculty were removed from the guardianship of EUR Holding and placed under the aegis of the new Erasmus MC Holding.

During the following years, the turnover growth more than caught up the losses. The number of private limited companies grew steadily, from 10 to 21 with a turnover of 45 million euros in 2018. To put this into perspective: this 45 million corresponds to the turnover of the largest faculty on EUR’s Woudestein campus, namely the Rotterdam School of Management (RSM) Erasmus University Faculty.

High-quality offerings focusing on the future

The subsidiaries of EUR Holding – institutes, foundations, private limited companies – should remain as long as the demand for their offerings exists. EUR Holding’s broad spectrum of educational and research activities provides a clear structure and also a platform for innovative activities carried out at the interface between scientific research and consultancy. There is a clear need for this in today’s society, in addition to specific executive trainings, programmes and courses. The combination of high-level scientific education and training, the long established and solid reputation of EUR faculties and the possibilities for interdisciplinary collaborations ensures a strong commercial market positioning of the private limited companies.

2020

The world of academia is evolving, changing with the times and society. After 25 years, EUR Holding has gained a prominent place within Erasmus University Rotterdam and forms an indispensable part of the scientific business community. Time to expand further! 

 ‘private limited company’ is the accurate term in English for the Dutch BV.