EU Economy: Issues and Policies

EU Economy: Issues and Policies Essay example
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This policy paper is for the attention of the Agriculture Minister of Britain, and is designed to explore whether: The CAP should be reformed, and if so why and how. Introduction: Since its introduction in 1962, the Common Agriculture Policy (CAP) of Europe has undergone many changes.


The food shortage of post-war Europe is not the reality today. Today CAP encourages farmers of EU to produce all types of fruits, vegetables, cereals and dairy products. The aim, now, is to produce enough food of good quality for the people of EU. Rather than focusing on only farming, the CAP of today’s EU focuses on a “diversified economic development in rural areas” and making sure rural people gets a fair standard of living (Agriculture 8Feb 2013). The focus is also on environment and welfare of animal. After 2012 the CAP has three priorities: (one) “viable food production”, (two) “sustainable management of natural resources”, “three balanced development of rural areas throughout the EU” (Agriculture and Rural Development, 6 Nov 2012). Should there be farther reform in the CAP policies (Agriculture 8Feb 2013)? The charts below shows how CAP evolved from 1971 to 2011 and shares of different budgetary allocations made in billion Euros: 1971 1984 1992 2005 2011 Source: (European Commission 2012) The CAP at Present: According to European Commission’s website on “CAP and agriculture in Europe- Frequently asked questions” the CAP budget is spent in the following three ways (Agriculture and Rural Development, 6 Nov 2012). 1. Farmers get a direct payment as an Income Support. ...
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