Q69.
Consider the following statements : 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?
Answer
A
Explanation
Stability and Growth Pact (SGP) is a set of rules to ensure that countries in the European pursue sound public finances and coordinate fiscal policies. Described as the Eurozone's fiscal the SGP is a set of fiscal rules designed to EU countries from spending beyond their 1997, member states have agreed that they keep GDP ratios of deficit and debt below 3% 60% respectively. The European Commission and Council finance ministers have the main duty of They issue an annual recommendation on measures every year and also monitor EU to ensure each nation is compliant with regulations. Countries that break the rules for consecutive years are fined a maximum of 0.5% of GDP. SGP does not make countries of the European share their infrastructure facilities or Hence only statement 1 is correct and (a) is the correct answer.