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?

The 'Stability and Growth Pact' (SGP) is a fiscal policy framework designed to ensure macroeconomic stability in the European Union by setting specific limits on national budget deficits (3% of GDP) and public debt (60% of GDP), making statement 1 the only correct one. Statements 2 and 3 are incorrect because the pact focuses exclusively on fiscal discipline and budgetary monitoring rather than the physical sharing of infrastructure or technological resources. This question tests the core concept of international fiscal coordination and the specific rules governing the Eurozone’s economic governance.