Raptor20 asked in Social ScienceEconomics · 1 decade ago

Common Agricultural Policy?

Under the Common Agricultural Policy (CAP), direct payments which are paid to farmers from the EU budget, were introduced in 1992. How were the 10 Central and Eastern European Countries (CEECs) including Cyprus and Malta, integrated into the CAP after their membership in the EU in May 2004?

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  • 1 decade ago
    Favorite Answer

    The expansion of the EU in 2004 increased the number of farmers from 7 to 11 million, increased the agricultural land area by 30% and crop production by 10-20%. The 2004 entrants into the EU have immediate access to price support measures (export refunds, intervention buying). However direct payments will be phased in over 10 years (2004-2013), starting at 25% of the rate paid to existing countries in 2004, and 30% for 2005. The 2004 entrants to the EU have access to a rural development fund (for early retirement, environmental issues, poorest areas, technical assistance) with a €5 billion budget. EU states agreed in 2002 that agricultural expenditure up to 2013 should not increase in real terms. This will require a cut in subsidies to the original states of around 5% to finance payments to the new members. With Romania and Bulgaria joining in 2007, the required cut will increase to 8%.

    The current areas that are issues of reform in EU agriculture are: lowering prices, ensuring food safety and quality, and guaranteeing stability of farmers' incomes. Other issues are environmental pollution, animal welfare, and finding alternative income opportunities for farmers. Some of these issues are the responsibility of the member states.

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  • vachon
    Lv 4
    3 years ago

    Subsidies presented while there have been nonetheless the unfavourable aspects of scarcity because of the consequence of WW2. long previous, many international locations and farmers in Europe (France particularly) nonetheless press for them to be saved. that's time somebody killed it off.

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