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?

Only one

Only two

All three

None

APEDIA

UPSC Prelims

2023 • 28 May, 2023 • Paper-1

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?

Correct Answer

Only one

Subject: Economy.Context: European Monetary Union.Details: The 'Stability and Growth Pact' (SGP) is a set of fiscal rules designed to prevent member states in t......

💡 Analysis & Explanation

Subject ▼

Economy.

Context ▼

European Monetary Union.

Details ▼

The 'Stability and Growth Pact' (SGP) is a set of fiscal rules designed to prevent member states in the European Union from accumulating excessive debt. It strictly limits budget deficits to 3% of GDP and public debt to 60% of GDP (Statement 1 is correct). It does not contain mandates for sharing physical infrastructure or technology among member nations (Statements 2 and 3 are incorrect).

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