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After five years of debates, consultations and negotiations, the European institutions reached an agreement in 2013 on the Common Agricultural Policy (CAP) for the 2014-2020 period. The outcome has major implications for the EU’s budget and farmers’ incomes, but also for Europe’s environment, its contribution to global climate change and to food security in the EU and in the world. It was decided to spend more than €400 billion during the rest of the decade on the CAP. The official claims are that the new CAP will take better account of society's expectations and lead to far-reaching changes by making subsidies fairer and ‘greener’ and making the CAP more efficient. It is also asserted that the CAP will play a key part in achieving the overall objective of promoting smart, sustainable and inclusive growth. However, there is significant scepticism about these claims and disappointment with the outcome of the decision-making, the first in which the European Parliament was involved under the co-decision procedure. In contrast to earlier reforms where more substantive changes were made to the CAP, the factors that induced the policy discussions in 2008-13 and those that influenced the decision-making did not reinforce each other. On the contrary, they sometimes counteracted one another, yielding an ‘imperfect storm’ as it were, resulting in more status quo and fewer changes. This book discusses the outcome of the decision-making and the factors that influenced the policy choices and decisions. It brings together contributions from leading academics from various disciplines and policy-makers, and key participants in the process from the European Commission and the European Parliament.
The CAP has traditionally been at the core of the European Communities and even now consumes half of the European Union's budget. This book emphasizes the long-term link between the CAP and the budget. It examines the aims of the Common Agricultural Policy as set out in the Treaty of Rome and discusses to what extent they have been achieved and whether they are relevant to the 21st century. The factors that have shaped the 1992 and 1999 CAP reforms are outlined, with the latter, in particular, demonstrating the budget's effect on CAP and CAP reforms. The internationalization of CAP with constraints being placed on it by the World Trade Organization is another important factor covered by the book. The 1999 reforms are measured against what may be allowed by the WTO and the demands of EU enlargement. This title is published in conjunction with UACES, the University Association for Contemporary European Studies. UACES web site can be found at www.uaces.org
What is the balance of the European Union’s Common Agricultural Policy more than half a century after its birth? Does it illustrate the virtues of the European model of coordinated capitalism, as opposed to US-style liberal capitalism? Or is it an incoherent set of instruments that exert diverse negative impacts and, like Frankenstein’s monster, seems to have escaped the control of its designers? The Political Economy of the Common Agricultural Policy does not criticize the CAP from the liberal standpoint that views most public interventions in the economy as bad for efficiency and welfare. The CAP has been costly to Europeans, both as consumers and as taxpayers, and has also generated a number of negative impacts upon third countries, but these costs and impacts have been more moderate than is suggested. This book proposes that the issue with the CAP is not a generic problem of coordinating capitalism but, instead, a more specific problem of low-quality coordination. The text argues that profound reform of the European Union’s institutions and policies is required to counter the rapid rise of a more Eurosceptical state of mind but – in the case of agricultural policy – history casts serious doubts on the capacity of the European network of agriculture-related politicians to lead such a reform. This key work is essential reading for researchers, graduate students, and master’s level docents of the Common Agricultural Policy and – more broadly – European Union policy and reform.
This book offers a comprehensive analysis of the Common Agricultural Policy which imposes high costs on taxpayers and consumers yet has proved very difficult to reform. Particular emphasis is placed on new developments affecting the shape of the CAP, including the outcome of the GATT Uruguay Round negotiations, Eastern enlargement, and developments in environmental policy. A distinctive feature of the book is the attention given to situating European agriculture within its global context and in relation to the food processing and agricultural supply industries.
First published in 1982. Considerable public controversy surrounded the large amount of public expenditure devoted to agriculture under the European Community’s Common Agricultural Policy (CAP). There were serious disputes over how the farm support system operated and how it was financed. This book describes the CAP situation and summarises previous attempts to assess some of the economic and financial flows arising from its creation using a common framework of well-established economic theory and methods. The CAP turned out to have a number of ‘costs’, depending on the concept of ‘cost’ used, the alternative policies considered, and the various assumptions made. The bulk of the book presents the structure and results of a comprehensive model of European Community agricultural markets and the associated CAP support mechanisms. This model is validated against official Community budget figures and then run to simulate a number of policy options and their consequences. This title will be of interest to students of economics, geography and agriculture.
For an industry which accounts for a small and decreasing proportion of the output of the European economy, agriculture gets a large slice of the European Union's budget and accounts for many of the political arguments which beset that organisation. Every family in the European Union has its food prices determined by the EU's Common Agricultural Policy (CAP) and the incomes of millions of farmers across Europe depend on the decisions made by those who control it. Yet few understand why the CAP exists, or on what basic principles it is managed. This book offers a simple and concise guide to the economics (and relevant history and politics) of the agricultural industry and the CAP. Assuming no knowledge of economic theory, it covers the economics of agriculture and provides an intelligible outline of the CAP's main features.
Understanding the cap; Mechanisms and analysis of the cap; The cap and the european union; The cap and the world; The cap and the future.
Essay from the year 2018 in the subject Economy - Environment economics, grade: 1,3, University of Applied Sciences Stuttgart, language: English, abstract: This essay deals with the question, whether the Common Agricultural Policy (=CAP) learned from its past experience and its mistakes. This raises the subquestions if the new system improved in comparison to the old system and if fundamental changes happened. To answer these questions, firstly the CAP will be defined shortly, its historical development and data related to it will be analysed. Secondly, the economic instruments behind the measures of the CAP will be explained to understand the logic of the development and its consequences. Thirdly, possible solutions are pointed out and a short conclusion sums up the main points and refers again to the main question. The Common Agricultural Policy, short CAP, is a set of policies with the original main objective of raising farm incomes in the European Union (=EU). Other basic goals have been the creation of a common policy to secure the provision of food at reasonable prices, the stabilization of agricultural markets and to support the efficiency of agriculture. Nowadays the objectives enlarged to the preservation of natural resources, environment, animal welfare and the support of the rural development. The regulation of the policy, directives and financing through the multiannual financial framework, is set by the EU and today the CAP amounts for nearly 40% of the EU budget.