scholarly journals In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?

2019 ◽  
Vol 11 (12) ◽  
pp. 3462 ◽  
Author(s):  
Artiom Volkov ◽  
Tomas Balezentis ◽  
Mangirdas Morkunas ◽  
Dalia Streimikiene

The European Union (EU) is an integrated alliance of equally treated Member States sharing mutual values, legal principles and markets. Close cooperation, deep integration and convergence are the major priorities for the EU. Anyway, these principles are not always reflected in the EU-wide policies which are implemented through financial support mechanisms. The direct payments financial support mechanism under the Common Agricultural Policy, the main instrument for promoting convergence in development of Member States’ agricultural sectors and rural sustainability, faces critique for failing to meet its objectives. One of the major deficiencies of the direct payments scheme is that it allocates more resources to already developed agricultural sectors of the older Member States and less resources to developing ones thus increasing the divergence among the Member States. The aim of this paper is to suggest new mechanisms for direct payment funds redistribution across the EU Member States which are based on the methodological principles that would more precisely correspond to the aims of convergence, transparency and fair redistribution. The results show that, regardless of the method chosen (to support more or less effective agricultural sectors of EU Member States), the proposed methodology lowers differences in direct payment rates among the EU Member States by two-fold. This ensures correspondence to the goal of convergence within the EU.

2012 ◽  
Vol 49 (No. 2) ◽  
pp. 71-79
Author(s):  
S. Tangermann

Inclusion of the countries in Central Europe (CECs) in the Common Agricultural Policy (CAP) of the European Union raises a large number of issues, not the least in the context of the accession negotiations among the current EU member states and the newcomers. However, in the process of enlargement, negotiations will also be necessary with other countries. This is because both the EU and the accession candidates have commitments in the WTO and inclusion of the CECs in the CAP may affect the nature of these commitments, as well as the ability of the enlarged Union to honour them. The paper deals with the fundamental problems in connection with presented themes.


2018 ◽  
Vol 41 (2) ◽  
Author(s):  
Kristaps Zdanovskis ◽  
Irina Pilvere

The Common Agricultural Policy (CAP) has considerably contributed to changes in the rural environment of Latvia after its accession to the European Union (EU). The accession provided new opportunities and considerable financial support for agriculture, yet the competition of farms under the conditions determined by the CAP has changed the composition of final agricultural output in Latvia. As the number of EU Member States increased and the CAP became more complicated, an increasing role in defending the interests of farmers is played by farmer organisations.


2006 ◽  
Vol 53 (4) ◽  
pp. 457-470
Author(s):  
Srdjan Redzepagic

Agriculture posed considerable tensions for the processes of enlargement of the European Union, because of its continuing importance both in the economies of the applicant countries of Central and Eastern European countries which have joined EU on the 1st may 2004., and in the EU budget and acquits communautaire. The preparation of agriculture in the candidate countries to join the EU was rendered more complex by the fact that the Community's Common Agricultural Policy was a moving target. The aim of this paper is to show the bases elements of the Common Agricultural Policy, but also to provide a survey of recent developments relating to agriculture in the EU and new member states of the EU before their accession to EU and their preparation to access on the enlarged market, in order to indicate the main challenges and difficulties posed by enlargement. It seems likely that agricultural policy in the enlarged EU will attach increased priority to objectives such as rural development and the environment. However, these new priorities may be expensive to realize, and may impose a growing burden on the national budgets of EU member states.


2012 ◽  
Vol 49 (No. 2) ◽  
pp. 62-66
Author(s):  
D. Ahner

The paper deals with the particular stages of development of the EU Common Agricultural Policy (CAP) in the last forty years. The process and impacts of CAP reforms are analyzed for the particular production industries of agriculture. The paper also presents a detailed description of Agenda 2000 and mid-term review of the Common Agricultural Policy in 2002 that brought about many proposals for the future working of CAP after accession of Central and Eastern European countries.


2019 ◽  
Vol 57 (2) ◽  
pp. 233-255
Author(s):  
Ivana Stojanović

AbstractApplication of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade), the community’s priority in meeting the needs for agricultural products (protection against imports) and the existence of financial solidarity (joint financing). Joining the European Union for new member states implies the termination of the implementation of the existing national agricultural policy and the the beginning of the implementation of the CAP. Although membership in the European Union implies many advantages, the period after joining this community can be quite economically unstable for some countries. One of the most significant problems is an increase in agricultural product prices and a rise in the general price level (inflation). The above can be confirmed by a simple empirical analysis of the economic indicators of the countries that joined the EU together in the period from 2004 until 2007.


2021 ◽  
pp. 180-187
Author(s):  
Nataliia SHYBAIEVA ◽  
Tetiana KVIATKO ◽  
Otabeg AZIZOV

The article identifies the impact of agricultural policy on the development of state regulation of the economies of European Union member states (EU). The main reason for the implementation of the Common Agricultural Policy (CAP) for EU member states has been identified. Some key reforms have been analyzed implemented within the integration association. It was found that the reform of CAP is due to the need to address market price uncertainty, respond to expanding access to the EU market by free trade agreements, use digital technologies to improve the accuracy and efficiency of CAP tools, accelerate their practical application, increase attention to environmental issues, environment, and climate change. The article also presents the main economic and social goals of the CAP, which are included in the Treaty on the Functioning of the European Union. It is established that the institutional component of the CAP reform is reflected in the introduction of proposals into the legislative framework of the CAP for the period 2021-2027. The proposals of the European Commission were formulated in nine key objectives, which are considered in this article. Some tools, requirements for their use, and indicators for measuring progress towards the nine specific objectives of the CAP, which the European Commission has proposed to EU member states to achieve the defined goals are also analyzed. The CAP EU budget for 2014-2020 is considered and compared with the proposed budget for 2021-2027 (in constant 2018 prices).


2011 ◽  
Vol 15 (5) ◽  
pp. 25-30 ◽  
Author(s):  
Jose Luis Alfaro-Navarro ◽  
Jose Mondejar-Jimenez ◽  
Manuel Vargas-Vargas ◽  
Juan Carlos Gazquez-Abad ◽  
Jose Felipe Jimenez- Guerrero

The Common Agricultural Policy (the CAP) is the most important common policy of the European Union, for which reason it traditionally monopolizes a large part of the European Union budget. Without doubt, the aids that farms receive from this policy are the pillar on which it sustains the battered agricultural sectors. Among CAP aid, direct payments are particularly important, in 2008 accounting for about 37% of the total EU budget. The main objective of this paper is to analyse the effects that the distribution of the CAP direct payments have on the agrarian economy. Specifically, we have analysed the equality level in distribution of CAP direct aid in the countries of the European Union using a concentration index. In this way, we have examined the fairness of distribution of CAP direct aid in the agricultural sector.


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