UPSC Prelims 2023 Question:

Consider the following statements

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?

Explanation:

• The Stability and Growth Pact (SGP) is a binding diplomatic agreement among European Union (EU) member states. Economic policies and activities are coordinated cohesively to safeguard the stability of the economic and monetary union. The Stability and Growth Pact (SGP) is a set of fiscal rules designed to prevent countries in the EU from spending beyond their means and pursuing sound financial policies. So, statement 1 is correct and statements 2 and 3 are not correct.
  
  

Therefore, option (1) is the correct answer.

Subject: Economics | Economic Organisations and Conventions