Abstract. “To promote a growth and employment orientated and efficient allocation of resources, Member States should re-direct the composition of public expenditure towards growth-enhancing categories in line with the Lisbon strategy, adapt tax structures to strengthen growth potential, ensure that mechanisms are in place to assess the relationship between public spending and the achievement of policy objectives, and ensure the overall coherence of reform packages”. [The Lisbon Strategy, integrated guideline no 3].

Keywords: growth potential synergies; corrective component; preventive component; the excessive deficit; budget stimulus; sustainability of public finances; structural reforms.