Consider the following statements: The ‘Stability and Growth Pact’ of the European Union is a treaty that
- 1.limits the levels of the budgetary deficit of the countries of the European Union
- 2.makes the countries of the European Union to share their infrastructure facilities
- 3.enables the countries of the European Union to share their technologies
How many of the above statements are correct?
- A.Only one
- B.Only two
- C.All three
- D.None
▶ Answer & Explanation
Correct answer: A. Only one
The Stability and Growth Pact (SGP) is a set of rules designed to ensure that European Union member states pursue sound budgetary policies. Its primary objective is to maintain the stability of the euro, which includes limiting excessive government deficits and debt. The pact imposes quantitative criteria on the annual government deficit (not exceeding 3% of GDP) and public debt (not exceeding 60% of GDP). Provisions for sharing infrastructure, technology, or other resources are generally addressed through different EU frameworks like structural funds or specific cooperation agreements, not the SGP.
Source: UPSC gs1 2023