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Abstract:
The Common Agricultural Policy has been reformed considerably since its creation. All of the successive reforms have involved an increasing shift from strongly supported sectoral interventions towards market-oriented policies of sustainable rural development. The CAP scenario for 2014-2020 indicates that the past principles favouring unequal distribution of funds will continue to guide the distribution of assistance under the major CAP tool, i.e. direct subsidy payments. As a result, the new Member States will still receive less funding to implement the redefined CAP objectives while making up for the level of agricultural development. Also, modification of the system involves some additional administrative burden that can weaken the competitiveness of agriculture in the EU. Referring to these issues, this paper evaluates the future CAP for the significance of the proposed changes for economic convergence in the EU’s agricultural sector.
