Consider the following statements : The 'Stability and Growth Pact' of the European Union is a treaty that
- limits the levels of the budgetary deficit of the countries of the European Union
- makes the countries of the European Union to share their infrastructure facilities
- enables the countries of the European Union to share their technologies
How many of the above statements are correct?
Detailed Explanation:
Answer: Option 1 — Only one
The Stability and Growth Pact (SGP) is an agreement among the 27 EU member states designed to maintain fiscal discipline and economic stability within the European Union. It primarily focuses on controlling budget deficits and public debt levels of member countries through monitoring and corrective mechanisms.
✅ Statement 1 – Correct: The SGP limits budgetary deficits through the Excessive Deficit Procedure (EDP), requiring member states to keep deficits below 3% of GDP and debt below 60% of GDP.
❌ Statement 2 – Incorrect: The SGP is a fiscal governance framework and does not mandate sharing of infrastructure facilities among EU countries.
❌ Statement 3 – Incorrect: Technology sharing is not part of the SGP's mandate, which is strictly focused on fiscal policy coordination and budgetary discipline.
Question 4 of 14 Regional Organizations & Groupings
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