Q89 · UPSC Prelims 2023 · Set A · Economy

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Consider the following statements:The 'Stability and Growth Pact' of the European Union is a treaty that1.limits the levels of the budgetary deficit of the countries of the European Union2.makes the countries of the European Union to share their infrastructure facilities3.enables the countries of the European Union to share their technologiesHow many of the above statements are correct?

A Only one
B Only two
C All three
D None

Correct answer: (a) Only one

Explanation

  1. A

    Only one

    Only one. The Pact caps deficits (and debt). It does not require sharing infrastructure or technology.

  2. B

    Only two

    Only two. Statements 2 and 3 are not SGP.

  3. C

    All three

    All three. Only the fiscal-limit limb is right.

  4. D

    None

    None. The deficit rule is the Pact’s core.

Summary. Official key is (a) only one. The Stability and Growth Pact sets EU fiscal rules — notably a deficit ceiling (3% of GDP) and a debt reference (60%). It is not a treaty to share infrastructure or technology.

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