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?
Answer & explanation
Answer: (a) Only one
Only statement 1 is correct. The Stability and Growth Pact is a set of fiscal rules that keeps member states' budget deficits (3% of GDP) and public debt (60% of GDP) within limits; it says nothing about sharing infrastructure or technology.
- ✓ 1. The Pact is meant to ensure sound public finances and coordinated fiscal policies, and compliance is checked against reference values of 3% of GDP for the government deficit and 60% for gross debt.
- ✗ 2. The Pact is a budgetary-discipline framework. It does not oblige countries to pool or share infrastructure facilities.
- ✗ 3. Technology sharing is not part of the Pact, which deals only with fiscal policy.
Remember · EU Stability and Growth Pact: fiscal rules limiting deficits (3% of GDP) and debt (60% of GDP), enforced through the excessive deficit procedure.
Sources
- European Commission, Economy and Finance: Stability and Growth Pact ↗ “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.”
- European Central Bank: Fiscal policies ↗ “Compliance with this rule is to be examined on the basis of reference values for the general government deficit (3%) and gross debt (60%) in relation to GDP”
Question and answer: UPSC's official GS Paper I (2023, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·