Question 89
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?
AOptions
BSolution
The 'Stability and Growth Pact' (SGP) is a set of rules designed to ensure that European Union member states pursue sound public finances and coordinate their fiscal policies. It is a key component of the Economic and Monetary Union (EMU), particularly for Eurozone countries.
1. The SGP primarily aims to limit the levels of the budgetary deficit (to a maximum of 3% of GDP) and public debt (to a maximum of 60% of GDP) of the EU member countries. This is its core function to ensure fiscal discipline and macroeconomic stability. Thus, Statement 1 is Correct.
2. The SGP focuses on fiscal policy coordination and does not involve making countries share their infrastructure facilities. Infrastructure development and sharing are typically handled through other EU policies, funds, or bilateral agreements. Thus, Statement 2 is Incorrect.
3. Similarly, the SGP is not designed to enable countries of the European Union to share their technologies. Technology cooperation and sharing might occur within the broader EU framework (e.g., through research programs or industrial policies), but it is not a direct objective or provision of the Stability and Growth Pact. Thus, Statement 3 is Incorrect.
Therefore, only one statement is correct.
CStrategy
For questions about international agreements or pacts, focus on their specific, stated objectives and mechanisms. Avoid assuming broader areas of cooperation (like infrastructure or technology sharing) unless they are explicitly part of the pact's mandate.
DSyllabus Analysis
This question falls under International Relations (International Organizations, Economic Blocs like EU) and Economy (Fiscal Policy, Macroeconomic Stability).
EQuestion Analysis
Medium. Requires specific knowledge of the EU's Stability and Growth Pact and its precise objectives, distinguishing it from general EU cooperation initiatives.