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?
Show answer
Answer: A. The Stability and Growth Pact sets fiscal rules for EU members: budget deficit should not exceed 3 percent of GDP and public debt 60 percent of GDP. It does not cover sharing infrastructure or technology. So only one.
Watch for: The EU shares many things, but this Pact is only about government budgets.
Why the other options are wrong
- B. Wrong because the Pact does not deal with sharing infrastructure.
- C. Wrong because the Pact is only about fiscal discipline.
- D. Wrong because limiting deficits is the core of the Pact.
Source to check: European Commission, Stability and Growth Pact page (economy-finance.ec.europa.eu)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.