35. Draws attention to the core issue of the composition of public expenditure aimed at sustainable growth and stresses that the quality and effectiveness of investments in infrastructure and human capital, with priority being given to services of general interest on the basis of a prior definition of people's needs and the composition of the population, and special attention to gender policies and demographic change, contribute to an increase in the productivity and competitiveness of the European economy; points out that the pressure on social and health services arising from the ageing of the population can be reduced through investment in health education ...[+++]; stresses that public expenditure should be reorganised by reallocating budget items to growth-enhancing sectors, using public resources more effectively and efficiently and providing for an appropriate integrated public-private network;

Enhance the contribution of the public sector to growth by: (i) substantially increasing the resources in national budgets devoted to investments by redirecting, while respecting overall budgetary constraints, public expenditure towards growth-enhancing investment in physical and human capital and knowledge, high-technology industries, environmentally-friendly production, infrastructures and trans-European network industries ; (ii) increasing the efficiency of public spending, inter alia, by introducing mechanisms to assess the relationship between public funds and policy objectives and to help control spending; and (iii) establishing ...[+++]an appropriate framework for joint public-private initiatives.

Enhance the contribution of the public sector to growth by: (i) redirecting, i.e. while respecting overall budgetary constraints, public expenditure towards growth-enhancing investment in physical and human capital and knowledge; (ii) increasing the efficiency of public spending, inter alia, by introducing mechanisms to assess the relationship between public funds and policy objectives and to help control spending; and (iii) establishing an appropriate framework for joint public-private initiatives.

Enhance the contribution of the public sector to growth by: (i) substantially increasing the resources in national budgets devoted to investments by redirecting, i.e. while respecting overall budgetary constraints, public expenditure towards growth-enhancing investment in physical and human capital and knowledge, high-technology industries, environmentally-friendly production, infrastructures and trans-European network industries; (ii) increasing the efficiency of public spending, inter alia, by introducing mechanisms to assess the relationship between public funds and policy objectives and to help control spending; and (iii) establish ...[+++]ing an appropriate framework for joint public-private initiatives.

promotion of investment in human capital and strategies for lifelong learning by re-directing public expenditure so as to increase efficiency in these areas, by raising the level of education and by closer involvement of companies in adult education.

Key actions include setting up European technology platforms, strengthening links between industry and public research, redirecting public spending towards research and innovation, making research careers more attractive and developing better fiscal incentives for research.