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Danish higher education and university research are under-financed compared with the US, Sweden and Switzerland, the Danish Rectors' Conference says in a report about the country's 11 universities.

Although Denmark devotes much money to education, very little goes to higher education, the rectors say.

University funding rose in the 1990s, but at a pace lower than inflation and certainly far below the growth in student numbers. Funding will fall in 2002-06 following a government decision earlier this year to cut grants by up to 15 per cent.

This makes the future bleak, the report says.