In this paper, Professor Jean-Marc Rapp, President of the European University Association, reviews the Association’s work on the topic of financial sustainability in the light of the developments that have had an impact of universities in Europe in the recent years. That includes general trends such as massification and rising costs for higher education; but also the economic crisis that continues to affect the sector today. The paper also explains the connections between the EUDIS study on income diversification and the European policies in the field of modernisation of higher education. The European University Association takes the view that financial sustainability is crucial and conditional on reliable, sufficient public funding, and adequate autonomy to be able to explore additional funding options.