The Stability and Growth Pact (SGP) is a set of rules designed to ensure that countries in the European Union maintain fiscal discipline. It aims to prevent excessive government deficits and debt levels, promoting economic stability across member states. The pact sets limits on budget deficits to 3% of GDP and public debt to 60% of GDP. The SGP was established in 1997 and is part of the broader Economic and Monetary Union. It includes preventive measures to encourage sound fiscal policies and corrective measures for countries that exceed the deficit and debt limits. This framework helps maintain a stable economic environment in the EU.