This volume is the third in a series of four publications on aspects of governance in higher education produced by a project to create a Regional University Network on Governance and Management of Higher Education in South East Europe. This handbook gives a general overview of the ways in which higher education is funded in selected countries in western Europe, with a more detailed presentation of higher education funding in France and England. Higher education funding in Romania is described to show the ways in which an Eastern European country in transition has adopted Western European methods of state and nonstate funding for its universities. The study provides many ideas for the financial reform of public higher education systems and institutions. The chapters are: (1)"European Background"; (2) "Funding Mechanisms for Universities: Financial Autonomy"; (3) "Financial Management at University Level"; and (4) "Worked Examples." Seventeen attachments (annexes) provide detailed information about the higher education systems examined. (Contains 8 figures, 33 tables, and 19 references.) (SLD)