scholarly journals Credit Market Imperfections and the Distribution of Policy Rents: The Common Agricultural Policy in the New EU Member States

Author(s):  
Pavel Ciaian ◽  
Johan F. M. Swinnen
2019 ◽  
Vol 11 (12) ◽  
pp. 3462 ◽  
Author(s):  
Artiom Volkov ◽  
Tomas Balezentis ◽  
Mangirdas Morkunas ◽  
Dalia Streimikiene

The European Union (EU) is an integrated alliance of equally treated Member States sharing mutual values, legal principles and markets. Close cooperation, deep integration and convergence are the major priorities for the EU. Anyway, these principles are not always reflected in the EU-wide policies which are implemented through financial support mechanisms. The direct payments financial support mechanism under the Common Agricultural Policy, the main instrument for promoting convergence in development of Member States’ agricultural sectors and rural sustainability, faces critique for failing to meet its objectives. One of the major deficiencies of the direct payments scheme is that it allocates more resources to already developed agricultural sectors of the older Member States and less resources to developing ones thus increasing the divergence among the Member States. The aim of this paper is to suggest new mechanisms for direct payment funds redistribution across the EU Member States which are based on the methodological principles that would more precisely correspond to the aims of convergence, transparency and fair redistribution. The results show that, regardless of the method chosen (to support more or less effective agricultural sectors of EU Member States), the proposed methodology lowers differences in direct payment rates among the EU Member States by two-fold. This ensures correspondence to the goal of convergence within the EU.


2012 ◽  
Vol 49 (No. 2) ◽  
pp. 71-79
Author(s):  
S. Tangermann

Inclusion of the countries in Central Europe (CECs) in the Common Agricultural Policy (CAP) of the European Union raises a large number of issues, not the least in the context of the accession negotiations among the current EU member states and the newcomers. However, in the process of enlargement, negotiations will also be necessary with other countries. This is because both the EU and the accession candidates have commitments in the WTO and inclusion of the CECs in the CAP may affect the nature of these commitments, as well as the ability of the enlarged Union to honour them. The paper deals with the fundamental problems in connection with presented themes.


2012 ◽  
Vol 49 (No. 6) ◽  
pp. 278-283
Author(s):  
M. Vosejpková

The Common Agricultural Policy (CAP) is of the character of a highly protective policy of the EU Member States. It includes a number of measures distorting the market directly and influences the farmers’ incomes depending on their production. There have been two reforms of the CAP so far and the third one is prepared with intention to come into force from 2006; it is called Mid-Term Review (MTR). This reform is concentrated on keeping and increasing consumers’ credibility and shifting to more competitive agriculture more orientated on market needs. The main Reform proposals include horizontal issues, i.e. Decoupling, Modulation/Degressivity, Cross-compliance, Farm Advisory System, IASC, Rural Development, and market issues concern dairy, cereals, rye, durum wheat, dried fodder, potato starch, seeds, nuts, rice, set-aside, carbon credit, beef. Besides the above mentioned goals, it is necessary to ensure conditions for rural development together with demands on environmental protection and improvement, so-called second pillar of the CAP. The attempt of cross-sectional summary and analysis of the MTR impacts for the EU was made in the article based on results of six studies performed by universities and DG AGRI in Brussels.


2021 ◽  
pp. 180-187
Author(s):  
Nataliia SHYBAIEVA ◽  
Tetiana KVIATKO ◽  
Otabeg AZIZOV

The article identifies the impact of agricultural policy on the development of state regulation of the economies of European Union member states (EU). The main reason for the implementation of the Common Agricultural Policy (CAP) for EU member states has been identified. Some key reforms have been analyzed implemented within the integration association. It was found that the reform of CAP is due to the need to address market price uncertainty, respond to expanding access to the EU market by free trade agreements, use digital technologies to improve the accuracy and efficiency of CAP tools, accelerate their practical application, increase attention to environmental issues, environment, and climate change. The article also presents the main economic and social goals of the CAP, which are included in the Treaty on the Functioning of the European Union. It is established that the institutional component of the CAP reform is reflected in the introduction of proposals into the legislative framework of the CAP for the period 2021-2027. The proposals of the European Commission were formulated in nine key objectives, which are considered in this article. Some tools, requirements for their use, and indicators for measuring progress towards the nine specific objectives of the CAP, which the European Commission has proposed to EU member states to achieve the defined goals are also analyzed. The CAP EU budget for 2014-2020 is considered and compared with the proposed budget for 2021-2027 (in constant 2018 prices).


2018 ◽  
Vol 41 (2) ◽  
Author(s):  
Kristaps Zdanovskis ◽  
Irina Pilvere

The Common Agricultural Policy (CAP) has considerably contributed to changes in the rural environment of Latvia after its accession to the European Union (EU). The accession provided new opportunities and considerable financial support for agriculture, yet the competition of farms under the conditions determined by the CAP has changed the composition of final agricultural output in Latvia. As the number of EU Member States increased and the CAP became more complicated, an increasing role in defending the interests of farmers is played by farmer organisations.


2012 ◽  
Vol 11 (2) ◽  
pp. 83 ◽  
Author(s):  
María Blanco Fonseca ◽  
Sol García-Germán Trujeda ◽  
Isabel Bardají

<p>Following their introduction in 1992,direct payments have become one of the main instruments of the Common Agricultural Policy. The aim of this study is to analyse potential scenarios of harmonization of direct payments in the CAP post-2013. In doing so, we use the CAPRI model, which represents the functioning of agricultural markets at the global level and simultaneously models CAP measures at the EU regional level. Results suggest that while a flatter rate of direct payments would have minor impacts on agriculture at the EU level, it would imply substantial redistributive effects, both across regions and Member States.</p>


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