This paper reflects on the challenges facing European higher education by investigating current dynamics across three national systems: Norway, Sweden and Finland. We identify four sets of tensions permeating current dynamics across the region, and link those to a series of dilemmas facing European universities more broadly. The paper demonstrates that there is a complex interplay between the so-called 'nested tensions' and different types of internal and external pressures. We conclude by providing a set of policy recommendations as well as suggestions for future research inquiries.