The eastward enlargement of the european union and the common agricultural policy
This paper briefly traces the main features of the Common Agriculural Policy (CAP), and of the transition process in the agriculural sectors of Central and Eastern European countries. The EU Commission proposal for the integration of the new members into the CAP is examined, in order to asses the implication both for the WTO negotiations, and for the negotiations with the new members about the "agricultural chapter". We argue that the main challange is to extend the CAP to the new members without upsetting the net contributors to the EU budget, and we analyse the effects of different schemes that would allow some cost sharing between EU and national budgets. The main conclusion is that the CAP for an enlarged Union should be based on decentralization of expenditures and a system pf subsidies and transfers among countries.
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