As Europe puts the accent on investing in education, schools' budgets are being slashed. Latvia is a prime example of this dichotomy.

Focus: Education costs

Hello. The school year  has only just begun

and in many European schools pupils and  teachers alike are facing drastic cuts

But the European governments insist they  want to invest in training and education

because in times of crisis education  is the first to be cut.

We'll discuss this with our guests, but  first Gundars Rēders takes us to Latvia

where last year on the brink of bankruptcy  school budgets were cut by 50%.

Amanda and her mother  go to the end of the road every morning.

The school bus always arrives  at 8 a.m. on the dot.

Amanda is the first passenger, but soon  other kids from the region will board.

We are in the far north of Latvia,  near the Estonian border.

This region is sparsely populated.  The economic crisis hit Latvia badly.

Many people moved abroad  with their families.

And the education budget  has been cut by 50%.

25% of schools have shut in this area  like the Rujas School.

17 of its pupils study at Jeru school,  which is 8 km away.

Amanda and the others  arrive in good time.

Lessons start at 9 a.m. to allow pupils  who live further away to get here on time.

Today we have mathematics,  natural sciences,

If I say an even figure,  clap your hands twice!

Amanda's friend Liga  makes the longest journey

as she lives very close to  the Estonian border.

By the time I get dressed,  eat something

and get ready it takes me  about an hour.

Then I go to the town centre  and wait for the bus.

In total there are 127 pupils  at Jeru secondary school.

The head teacher says  that as a local councillor

she did everything to protect  the school from closing.

If it closed there would be  no local cultural activity

as our school is a focus for  the town's cultural life

because we don't have  a cultural centre.

An area is more active if there is  a school as it's the heart of local life.

Rujas School was less lucky.  Before closing 40 pupils studied here.

But now we only come across  a lone cyclist.

When the closure was announced  parents signed a petition

to stop the decision,  but it didn't help says Nora Rektina

who worked at the school  for almost 40 years.

Some teachers have found jobs  in other schools,

some are unemployed  and some moved abroad.

They were provided with food and clothes.  We knew all the kids.

The children came from  different social backgrounds.

In winter some arrived  at school barefoot.

We had to give them something  to put on their feet.

Before closing,  Rujas School was renovated

and a purification plant was installed  using EU funds.

The building has stood empty  for about a year.

Reformers insist that schools will be put  where there are kids.

Larger schools can pay teachers more,  and the quality of education is higher.

They say it’s inefficient to keep a school  with a staff of 20 if there are only 40 kids.

Around 100 schools have been closed  or reorganised in Latvia.

Schools are and I hope  always will be cultural centres,

centres for preserving  and enriching national identity.

have to think about providing  work places for young families.

So, if young families have places to work  or to open up their own businesses,

we, those who are  responsible for education,

we will provide  good quality education.

Amanda’s mother used to work at  the school but now she is unemployed.

because there's very little chance  of finding a job here.

To talk about school budget cuts and  budget problems in several countries,

from the Alliance  of Liberals and Democrats

and Jonathan Favereau, Secretary  General of the student union, OBESSU.

In EU objectives, we constantly  hear about the need to invest

in education and training  and provide good education

but as soon as there are budgetary cuts,  the first thing to be affected are schools.

What's your opinion on that?  - It's pretty simple.

It's clear that in the majority  of European countries

that the EU's ambitious aims  do not become reality.

Also, it's clear that on a national level,  budgets are systematically reduced.

In many countries, like Italy and France,  there is talk of essential cuts,

wasting money  and how to spend more sensibly.

Is there a more intelligent  way of spending the money?

There are definitely more intelligent ways  to spend the money.

When it's announced that we  have to provide better education,

and that's what's required  at a European level,

by spending less money,  it's an unrealistic demand.

It doesn't take into account  the reality of the situation.

Putting pupils at the centre  of educational plans,

whilst increasing class sizes  is complete madness.

Mr Haglund, you're from Finland,  which leads the way in education,

with almost 100% going through  the school system.

Firstly, could you tell us  the secret to your success

and then if the Scandinavian model  is also experiencing budgetary problems?

The main success is the fact  that we have wanted everyone

to have the chance to attend school,  equal opportunities for all.

It's also what makes Finland  so competitive.

We know that it's very short-sighted not  to emphasise the importance of school.

Can you explain the Finnish system  to those who don't know it?

I read that you save a lot of money  when it comes to testing.

The system relies less heavily  on exams and homework.