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Cap Between First and Second Pillars: Looking into EU Spending on Agriculture

Author

Listed:
  • Fabrizio De Filippis
  • Roberto Henke

Abstract

In this paper we offer some reflections on the Cap reform process, starting from analysis of the objectives and the solidity of its two financial pillars. In the first part of the paper agricultural expenditure is re-classified on the basis of major Cap intervention typologies, showing how a process of de-specialisation and overlapping of measures between the two pillars is at work. In the second part various financial resource allocation criteria are analysed in the light of the weight attributed to different combinations of five macro-variables: direct payments, disadvantaged area allowances, agricultural area, environmental measures, sector modernisation measures. More in general, the paper sheds light on the necessity to review the two-pillar structure of the Cap and revise its objectives and tools in order to make it more sustainable and more equitable in the long run.

Suggested Citation

  • Fabrizio De Filippis & Roberto Henke, 2010. "Cap Between First and Second Pillars: Looking into EU Spending on Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.
  • Handle: RePEc:rar:journl:0188
    as

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    References listed on IDEAS

    as
    1. Alan Randall, 2002. "Valuing the outputs of multifunctional agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 289-307, July.
    2. Jean-Christophe Bureau & Louis-Pascal Mahé, 2009. "Cap Payments after 2013 and Rural Public Goods," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    3. Henke, Roberto & Sardone, Roberta, 2008. "The fortune of modulation in the process of CAP reform," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44816, European Association of Agricultural Economists.
    4. Moschini, GianCarlo & Sckokai, P., 1993. "Interventi Disaccoppiati, Riforma Della Pac E Redditi Agricoli: Una Analisi Qualitativa," Staff General Research Papers Archive 11248, Iowa State University, Department of Economics.
    5. Rabinowicz, Ewa, 1999. "Redesigning the CAP to Meet the Challenges of EU Enlargement and the WTO: What Can Agricultural Economic Research Contribute?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 265-281, August.
    6. Fabrizio De Filippis & Daniela Storti, 2002. "Le politiche di sviluppo rurale nell´unione europea: un secondo pilastro tutto da inventare," Departmental Working Papers of Economics - University 'Roma Tre' 0025, Department of Economics - University Roma Tre.
    7. Zahrnt, Valentin, 2009. "Public Money for Public Goods: Winners and Losers from CAP Reform," ECIPE Working Papers 51300, European Centre for International Political Economy (ECIPE).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Community budget; Cap reform; Direct payments; Rural development; New member states; Public goods;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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