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In these ways, an expansion to the scale of higher education is being promoted. At the same time, as the higher education population increases, improvement of its quality is a serious issue. The increased number of students that has accompanied the expansion of baccalaureate holders has been accommodated mainly by universities, which do not select entrants. However, students who are unable to keep up with their classes and either repeat their first year or drop out now account for about 40 to 50 percent of enrollees. Reform was carried out in 1997 to cope with this serious situation, including flexible handling of transfers to other schools and the introduction of a tutorial system, wherein upperclassmen advise new students in their studies and student life. Nevertheless, neither the repeater nor dropout situations have improved. Higher education reform remains an issue of utmost priority today.

To heighten the international competitiveness of France's institutions of higher education along with integration of the EU, an EU-standard new degree system is in the process of being implemented. France's traditional degree system is based on a complicated scheme in which a great variety of common national diplomas up to the doctorate are conferred after completion of the second, third, fourth and fifth years of university. Therefore, it was difficult to find commensurate levels in the degree systems of other countries. The Concept of European Sphere of Higher Education advanced by the EU requires each member state to introduce a three-stage degree system comprised of bachelor's, master's and doctoral degrees. France is also pursuing a policy of working aggressively to adjust to this system. A government ordinance of April 2003 stipulated the transition to a new 3-5-8 degree system, wherein a bachelor's degree is conferred after completion of the third year of university study, a master's after completion of a total of five years of study at a university or grand ecole, and a doctorate after the subsequent completion of a standard three-year course. This system is to be introduced gradually at all higher education institutions in France.

In 1984, the Contract Policy became systematized as a measure to improve quality and vitalize universities. Under the Contract Policy, each university adopts an all-study plan that indicates the course of its development for four years, and based on this negotiates with the national government to conclude a contract with the government that serves as the university's interim plan. The government assigns teaching staff, performs maintenance of facilities and covers working expenses, etc., while the university makes its own effort to achieve its objectives.

To promote such reforms further, the government in 2003 announced its policy to strengthen further universities' discretionary powers and the principle of accountability of universities. To this end, proposals are now being put forth to convert the heretofore almost exclusively nationally-owned school land and buildings to university ownership and otherwise expand the power of universities over administration, operation and finances, while at the same time making the heretofore voluntary third-party evaluations obligatory.