For Germany, §53 of UrhG allows actually a lot (compared to other countries' fair use policies). The deal is that flat fees on copying machines, scanners, printers, etc. (as well as on paper) are collected and redistributed to authors.
I find §53 slightly ambiguous for the university teacher:
(3) says rougly:
It is allowed to make copies of small parts of works, of small works, or of single articles that are published or made publicly available in newspapers or journals for personal purposes
to illustrate in teaching at schools, non-commercial facilities for education and advanced training as well as in facilities for professional training in the numbers required for the course participants.
for state exams or exams in schools, universities, non-commercial facilities for education and advanced training as well as in facilities for professional training in the numbers required.
So the "universities" are missing in 1. Usually, I'd say they are covered by those other categories, but they are explicitly listed in 2.
However, for sure the students are allowed to make a copy: (2) 1. runs:
(2) It is allowed to make or have made single copies of a work
- for personal scientific use, if and as far as copying is needed for this purpose and does not follow commercial purposes.