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Q89·GS Paper 1 · Prelims 2023

EU Stability and Growth Pact — limits budgetary deficit, sharing infrastructure, sharing technologies

IRGlobal Economic GovernanceHow-many countingMediumStatic

Question

Consider the following statements: The 'Stability and Growth Pact' of the European Union is a treaty that How many of the above statements are correct?

  1. 1.

    limits the levels of the budgetary deficit of the countries of the European Union

  2. 2.

    makes the countries of the European Union to share their infrastructure facilities

  3. 3.

    enables the countries of the European Union to share their technologies

Options

a

Only one

Answer
b

Only two

c

All three

d

None

Explanation

Only statement 1 is correct. The EU's Stability and Growth Pact is a set of rigid fiscal rules designed to maintain Economic and Monetary Union stability. It strictly limits a member state's budgetary deficit to 3% of GDP and public debt to 60%. It contains zero mandates for sharing physical infrastructure or proprietary technologies.

The "Stability" in the EU's Stability and Growth Pact strictly refers to macroeconomic fiscal discipline (controlling deficits and debt).

Answer: (a).

Question details

Year

2023

Paper

GS Paper 1

Question

Q89

Subject

International Relations

Sub-topic

Global Economic Governance

Type

How-many counting

Difficulty

Medium

Nature

Static

Source hint

European Union Stability and Growth Pact Eurozone Rules

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