The ‘Stability and Growth Pact’ of the European Union is a treaty that

1. Limits the levels of 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
d. None

Question from UPSC Prelims 2023 GS Paper

Explanation :
Correct Answer – a

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. The primary objective of the SGP is to limit the levels of budgetary deficit of the countries of the European Union. It does not specifically address sharing infrastructure facilities or technologies among the member countries.