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?

IAS 2023 — International Relations International Relations

2023mcqmedium

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?

Official previous-year question

Verified 2 Aug 2026.

Options

AOnly one
BOnly two
CAll three
DNone

Did you get this right?

Solution

Correct Option

Statement 1 is correct.

The Stability and Growth Pact (SGP) is a set of rules designed to ensure that European Union member states pursue sound public finances. It establishes limits for government budget deficits and public debt. Specifically, it requires member states to keep their annual budget deficit below 3% of their Gross Domestic Product (GDP) and their public debt below 60% of GDP. This framework aims to prevent excessive fiscal imbalances that could undermine the stability of the Economic and Monetary Union (EMU).

Incorrect Options

Statements 2 and 3 are incorrect.

The Stability and Growth Pact focuses exclusively on fiscal discipline and macroeconomic stability within the European Union. It does not contain provisions related to the sharing of infrastructure facilities or the mandatory sharing of technologies among member states. These aspects fall outside the scope of the SGP's objectives, which are centered on budgetary prudence and debt management.

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