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?
This questions was previously asked in
UPSC CSP Previous Year Paper (2023)
Only two
Incorrect AnswerAll three
Incorrect AnswerExplanation:
The 'Stability and Growth Pact' (SGP) is a set of rules designed to ensure that countries in the European Union pursue sound public finances and coordinate their fiscal policies.
limits the levels of the budgetary deficit of the countries of the European Union: This is correct. One of the primary purposes of the SGP is to ensure that EU member states adhere to the two main fiscal conditions of the Maastricht criteria: a budget deficit no higher than 3% of GDP and a national debt below or decreasing toward 60% of GDP.
makes the countries of the European Union to share their infrastructure facilities: This is incorrect. The SGP does not specifically address the sharing of infrastructure facilities among EU countries.
enables the countries of the European Union to share their technologies: This is incorrect. The SGP focuses on fiscal discipline and does not involve technology-sharing arrangements.
Thus, only the first statement is correct, and the answer is "Only one".
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By: Parvesh Mehta