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Reforming Pillar 2 –Towards Significant And Sustainable Rural Development?


  • Bergmann, Holger
  • Dax, Thomas
  • Hocevar, Vida
  • Hovorka, Gerhard
  • Juvancic, Luka
  • Kroger, Melanie
  • Thomson, Kenneth J.


With the ongoing “Health Check” and the decisions needed for after 2013, the Common Agricultural Policy is likely to see another major reform and an increase in compulsory modulation. By employing a regional model, this paper compares the long-term impact of spending along the Pillar 2 Axes in NUTS3 areas on selected indicators of sustainability in several peripheral areas across Europe. The four case study areas are: Pinzgau-Pongau (a tourism-dominated alpine area in Austria), the Wetterau (an urbanised industrial area in Germany), Gorenjska (a tourism and manufacturing dominated area in Slovenia) and Caithness-Sutherland (a remote area in Scotland). The results suggest although devolution in European rural development policy has taken over the last 10 years, there is further need to restore place-based stewardship of public goods and services as well as private investments across rural areas in the European Union. Increasing the importance of Axis 2 and Axis 3 measures (part of CAP Pillar 2) therefore seems an obvious choice for the future. Furthermore, it is clear that the effects of wider societal trends such as the decreasing importance of agriculture, commuting and migration, can be weakened or amplified by EU funding but can not be reversed or significantly changed.

Suggested Citation

  • Bergmann, Holger & Dax, Thomas & Hocevar, Vida & Hovorka, Gerhard & Juvancic, Luka & Kroger, Melanie & Thomson, Kenneth J., 2008. "Reforming Pillar 2 –Towards Significant And Sustainable Rural Development?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44793, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa109:44793

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    References listed on IDEAS

    1. Arild Vatn, 2002. "Multifunctional agriculture: some consequences for international trade regimes," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 309-327, July.
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    Cited by:

    1. Guenther-Lubbers, Welf & Theuvsen, Ludwig, 2014. "Regionalökonomische Effekte Der Niedersächsischen Biogasproduktion," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187426, German Association of Agricultural Economists (GEWISOLA).

    More about this item


    CAP; Pillar 2; rural development; Agricultural and Food Policy; R15; Q18; Q01;

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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