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Agricultural Support: Consequences of the Eventual Accession of the Balkan Countries to the Europe Union

Author

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  • Sandor Richter

    (Vienna Institute for International Economic Studies, Vienna, Austria)

Abstract

The author estimates the potential impact of the accession of seven Balkan countries (Albania, Croatia, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia and Turkey) to the EU on the agricultural direct payments and rural development expenditures disbursed from the EU budget. The estimation is based on the assumption that the agricultural support to GDP ratios are similar across member states at similar levels of development sharing a similar weight of agriculture in the economy. The results show that the annual additional burden for the 27 current EU members due to a Balkan enlargement would range between EUR 5 and 11.5 billion (in 2004 prices). The former figure reflects an agricultural support to GDP ratio corresponding to the average of the 12 new member states; the latter reflects the respective (average) ratio of Bulgaria and Romania. In relative terms the Balkan enlargement would necessitate a net increase of the pool of transfers for direct payments and rural development expenditures in the range of 10% to 23%.

Suggested Citation

  • Sandor Richter, 2008. "Agricultural Support: Consequences of the Eventual Accession of the Balkan Countries to the Europe Union," Financial Theory and Practice, Institute of Public Finance, vol. 32(2), pages 183-191.
    • Handle: RePEc:ipf:finteo:v:32:y:2008:i:2:p:183-191
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    File URL: http://www.ijf.hr/eng/FTP/2008/2/richter.pdf
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    References listed on IDEAS

    as
    1. Grethe, Harald, 2005. "Turkey’s accession to the EU: what will the Common Agricultural Policy cost?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(02), pages 1-10.
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    More about this item

    Keywords

    Common Agricultural Policy; Balkan; EU enlargement; EU budget; costs of EU enlargement;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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