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?
(a) Only one
(b) Only two
(c) All three
Only one of the statements is correct.
- 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.
- The SGP sets two hard limits on EU member states: a state’s budget deficit cannot exceed 3% of GDP and national debt cannot surpass 60% of GDP.
- The SGP does not make the countries of the European Union share their infrastructure facilities or enable them to share their technologies.
Therefore, the correct answer is (a) Only one.
Inputs from Current Affairs Notes