FINANCIAL SUPPORT FOR THE DEVELOPMENT OF VOCATIONAL EDUCATION AND TRAINING: EUROPEAN EXPERIENCE AND PROSPECTS FOR UKRAINE

Abstract

This article examines European mechanisms for the financial support of vocational education and training (VET) in the context of profound structural transformations of modern economies driven by the green and digital transitions, demographic change, and evolving labour market demands. The relevance of the study is determined by the growing role of VET in the formation of human capital necessary to ensure sustainable economic development, social cohesion, and long-term competitiveness of European Union economies, as well as by the urgent need to modernise and adapt effective VET financing models in Ukraine under conditions of wartime disruption and post-war recovery. The paper provides a systematic analysis of key financial instruments supporting vocational education in EU member states, including national and regional budgetary funding, dedicated vocational training funds, European Union investment programmes, public–private partnership mechanisms, employer co-financing of skills development, and instruments aimed at promoting lifelong learning. Particular attention is paid to the institutional architecture of VET financing systems, the role of multi-level governance, and the coordination between education, economic, labour market, and social policies in shaping resilient and adaptive training systems. Based on a synthesis of European policy documents and analytical evidence, the study identifies core institutional prerequisites for the effective functioning of VET financing mechanisms. These include the diversification and flexibility of funding sources, alignment of financial instruments with regional labour market needs, active involvement of employers and social partners, and a results-oriented approach to public spending focused on employability, skills relevance, and social inclusion. The article also highlights the growing importance of individual-level financial instruments, such as individual learning accounts and training vouchers, as complementary tools for expanding access to vocational education and reducing inequalities in lifelong learning opportunities. The paper substantiates priority directions for adapting European approaches to the financing of vocational education in Ukraine, taking into account public financial management reform, decentralisation processes, European integration commitments, and sustainable development objectives. It is argued that the selective and context-sensitive integration of European financial mechanisms can contribute to increasing the resilience of Ukraine’s VET system, improving its responsiveness to labour market needs, and supporting inclusive economic recovery in the post-war period.