I don't know if this is because of some policy, funding problems or because they let in people that should not be there. In any case, be prepared... Is very hard to survive the first year and you will be under a lot of (excesive?) pressure.
The rest (environment, professors, etc) I would say is pretty good for European standards. Right now they managed to place one student as a pos-doc at Harvard Business School (this is beyond extraordinary and certainly an outlier, but is an indication that quality is high).