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The EU Budget and the CAP: An Agenda for the Review?

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  • David Harvey

Abstract

The promised review of the EU Budget in 2008 offers an opportunity to bring CAP financing into line with logic, justice and the rest of EU policy. Currently, the CAP is unique amongst European policies in being both mandatory and requiring 100 per cent financing by the EU budget. While this made good sense at the policy's inception, it is now an obsolete anachronism. A sensible and defensible agenda for financial reform, which is all that is on the reform agenda at present, is to make the EU budget responsible for only a fraction (say 25 per cent) of the costs of the current CAP, instead of the present 100 per cent. This would bring CAP financing into line with other EU policies, and make member states separately responsible for the balance for their own farmers, as they so wish, up to the CAP budgetary ceiling already agreed. Any resulting competition between member states in the extent and means by which they continue (or not) to support farmers through direct payments would be controlled through EU Competition and single market policies. Such competition would also provide a good opportunity for experiments with policy development, to the advantage of all, since different policies are required for the different stages of development and different local conditions now evident within the EU. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2006.

Suggested Citation

  • David Harvey, 2006. "The EU Budget and the CAP: An Agenda for the Review?," EuroChoices, The Agricultural Economics Society, vol. 5(1), pages 22-27, April.
  • Handle: RePEc:bla:eurcho:v:5:y:2006:i:1:p:22-27
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