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That's fine if it is needed to prevent American-style class education, but I would say the subsidy should be as low as possible. Some amount of tuition seems OK to me, as long it is coupled to a decent loan system where you do not pay if your income is low.
If you are not willing too loan 1000 or 2000 euros a year to pay your tuition, why should the government pay a far multiple of that amount to cover the rest?
Most people have to take out loans anyway to cover living expenses. I don't think there has to be any further disincentive for those from non-wealthy family backgrounds.
Also, in many places the state himself requires some level of university education for some positions. Essentially instituting a cost of access for government employees is a scary proposal.
Finally, price discrimination means shutting up the universities to the poor ; making the university education premium yet higher, and going yet more disproportionately to those already well off. Since the state is anyway going to subsidize university, that would mean an even more regressive subsidy. Un roi sans divertissement est un homme plein de misères
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