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?

Gives a concrete example of a statutory rule that mandates a fiscal deficit ceiling of 'not more than 3 percent of GDP' (Indian FRBM Act context).

A student could use this as a precedent showing that legislated numeric deficit ceilings exist and therefore plausibly check whether the EU has a similarly worded rule (e.g., in the SGP or Maastricht-related texts).

Explains how fiscal deficit is measured as a percent of GDP, which is the same metric cited in the statement (3% of GDP).

Knowing the metric, a student can interpret references in EU documents and compare any EU threshold expressed as a share of GDP to this standard measure.

Describes a statutory 'escape clause' that allows exceeding an annual fiscal deficit target for specified exceptional conditions.

This signals that fiscal rules often include exceptions; a student could therefore look for similar escape or flexibility clauses in the EU's pact to better judge how rigid a 3% rule would be in practice.

Notes that fiscal deficits vary with economic cycles (recession raises deficits), giving context why fixed percentage limits might be controversial or require flexibility.

A student can use this economic pattern to understand why a pact like the SGP might include conditionality or cyclical adjustments around any numeric deficit limit.