The Impact of Central and Eastern Europe Joining the Common Agricultural Policy on Agricultural Protection in the European Union: A Political Economy Perspective

Author(s):  
Harry De Gorter ◽  
Ján Pokrivčák
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.


2019 ◽  
Vol 2 (1) ◽  
pp. 12-17 ◽  
Author(s):  
Nicola Galluzzo

In Italy since 2000 there has been a significant decrease of farms and a notable increase of the usable agricultural areas. In order to reduce the socioeconomic marginalization in rural territories the European Union has supported financially the rural development in a pattern of pluriactivity and productive diversification in farms. The core purpose of this research was to assess by a multiple regression model the impact of financial subsidies allocated by the Common Agricultural Policy on the farmer net income since 2004 to 2016 in Italian farms belonging to the Farm Accountancy Data Network. Findings have pointed out a direct impact of financial supports disbursed by the European Union; by contrast, no impacts have had payments disbursed by the second pillar. Drawing the conclusions, it is fundamental to increase the financial supports of the Common Agricultural Policy aimed at implementing the land capital endowment which is the one of the main bottlenecks in Italian farms.


2021 ◽  
Vol 129 ◽  
pp. 09002
Author(s):  
Tatiana Bencová ◽  
Andrea Boháčiková ◽  
Marián Tóth ◽  
Diana Pindešová

Research background: The main goal of the Common Agricultural Policy (CAP) is to support farmers and improve their productivity. Agriculture is a specific sector of the economy, characterized by income support for farmers to ensure the availability of quality food. However, the question remains whether Slovak farms are financially healthy under the influence of the reformed CAP of European Union (EU)? Purpose of the article: The main goal of the article is to evaluate the financial health of Slovak farms using selected prediction techniques pointing to the impact of the CAP of EU. Methods: We have used data obtained from the financial statements of Slovak farms in the years 2009-2020. The financial health of farms will be assessed using selected generally constructed models of multivariate discriminatory analysis (Altman Z-score, IN 05, Creditworthiness Index, Taffler model), but also prediction models that have been specially constructed for the Slovak agricultural sector, such as G-index and CH-index. To detect the statistical differences between the years 2009-2013 and 2014-2020 in the value of prediction models of farms were used statistical t-tests of conformity in the surveyed sample. Findings & Value added: The results can be evaluated on two levels. The first of them is a look at the analysis of the financial health of Slovak farms in the context of the interpretation of the regulations of the Common Agricultural Policy of EU. The second output is an evaluation of the financial health of farms in the selected time period.


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