Government Expenditures and Economic Growth in Europe: The Contribution of Public Expenditures to the Lisbon Strategy (Staatsausgaben Und Wirtschaftswachstum in Europa: Der Beitrag Der Öffentlichen Ausgaben Zur Lissabon-Strategie)

Abstract

The EU's Lisbon strategy of 2000 (renewed in 2005) calls for substantial improvements in the quality and sustainability of public finance. In this context, the current study concentrates on the growth potential of public expenditures. National Reform Programs are analyzed in order to draw conclusions on the growth-orientation of public expenditures in Austria. One conclusion is that the structure and size of public expenditures in Austria are consistent with long-term fiscal stability. However, the growth potential could be further enhanced by redistributing the responsibilities between the different levels of government, introducing effective expenditure rules, and restructuring public expenditures in favor of educational and R&D expenditures.

Note: Downloadable document is in German.

Keywords: Quality of public finance, growth potential of public expenditures, Lisbon strategy, Austria

JEL Classification: H11, H50