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 in- frastructure facilities 3. enables the countries of the European Union to share their technologies How many of the above statements are correct?

Question

YESPYQ · Accepted Answer

Correct answer: Only one. Statement 1 is correct : The Stability and Growth Pact (SGP) is an agreement among the member states of the European Union (EU) to facilitate and maintain the stability of the Economic and Monetary Union (EMU). It sets limits on the budgetary deficits and public debt of EU member states. It requires countries to keep their budget deficits below 3% of GDP and public debt below 60% of GDP or to be working to- wards these targets. Statements 2 and 3 are incorrect :  The Stability and Growth Pact does not mandate or involve sharing infrastructure facilities among EU member states. It is purely focused on fiscal discipline and economic stability.  The Stability and Growth Pact does not directly deal with technology sharing or cooperation in technological development. 18

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