This article is based on the Keynote Address to the European Conference on Educational Research (ECER), Dublin, Ireland, 7-10 September 2005. It argues that we are facing the simultaneous renegotiation of the major post-war social contract (concerning the welfare state) in Europe and the renegotiation of a smaller-scale modern social pact: the pact between the university and the nation-state. It suggests that the current, and especially future, transformations of the university are not fully clear outside of the context of transformations to the state (and to the public sector) under global pressures. These pressures, both directly and indirectly, will not leave the university as an institution unaffected. Thus it is more useful today than ever before to discuss the future of the university in the context of the current transformations of the state. The study is divided into four sections: a brief introduction; a section on the university and the welfare state in Europe; a section on the university and the nation-state in Europe; and tentative conclusions. (Contains 19 notes.)