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?

Prelims 2023 · International Relations and Organisations · Question 69

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?

Answer

Correct. The EU’s Stability and Growth Pact (SGP) sets fiscal rules for member states, especially limits on budget deficits and public debt (famously 3% deficit and 60% debt reference values).
Incorrect. The SGP is not about sharing infrastructure facilities; it is a fiscal discipline framework for EU economies.
Incorrect. The SGP does not deal with technology sharing; that falls under other EU policies/programmes, not this pact.

Hence, only one statement is correct.