This paper discusses university finances in European countries which derive from the Humboldtian tradition. Such universities are mainly state funded, are independent academically but dependent financially, and have long histories of keeping the power of the state at bay. The most far-reaching, and arguably intended, consequence of government policies has been the breakdown of trust between government and academia (Alderson 2002). To some extent, this breakdown of trust was probably justified in view of the lack of professionalism of academics as teachers (Elton 1998, Curzon-Hobson 2002). Whether trust will increase in the present climate of antagonism between universities and the state, now that academia is beginning to become more professional (Holroyd 2000), must be doubted.