What is a main purpose of Stability and Growth Pact SGP ATo

What is a main purpose of Stability and Growth Pact? (SGP)?

A.To prevent inflationary pressure on ESCB.

B.To centralize fiscal policy.

C.To prevent? beggar-thy-neighbor policies.

D.To establish equal rates of economic growth in the? Euro-zone.

Solution

Answer : The main purpose of stability and Growth pact to centralize fiscal policy. It is rule based framework to manage fiscal and Monetary policy. It has medium terms budgetary objective and fiscal policies as well as maintain euro through fiscal policies.