Do public expenditure components boost growth?

Theoretical debate on economic growth of European Member States (EMS) has been very heated in the last decades. On a side, some authors highlighted that the run-up to European Monetary Union (EMU) would have been generating the integrative and internal forces necessary to realize the economic growth among all the MS. On the other side, other authors affirmed that particularly the Southern European countries, not prepared to continuous fiscal discipline (especially in terms of spending control) would have been worsening their economic position. The present work aims to empirically investigate the impact on economic growth of two public spending budgetary components in the Central, Southern, Eastern and Mediterranean European Countries, assessed in the compliance context of fiscal discipline related to public spending control.