Thus (at least) from the perspective of the Treaty on European Union, (and its predecessor Treaties) funding for agriculture should be a medium for reducing or eradicating regional disparities within the European Union. Funding for agriculture within the Union has historically been dispensed under the Common Agricultural Policy.
The Common Agricultural Policy came into being in 1962 after the ratification of the Treaty of Rome in 1957 and the resultant establishment of the Common Market. The establishment of the Common Market came with Treaty requirements that guaranteed the free movement of goods (among other freedoms like the free movement of services, persons, and capital).
The member states of the then European Economic Community - France, Germany, Italy, Belgium, the Netherlands, and Luxemburg - all had different agricultural policies that had some state intervention in the sector. France was however notable for its very strong state intervention in its agricultural sector and insisted on the maintenance of subsidies for the agricultural sector as a condition for the establishment of the Common Market. (BBC Q&A, 2005) Thus the issue of free trade guarantees in the Treaty of Rome and the barriers to trade in agricultural products that individual state intervention through subsidies in the agricultural sector would bring was evident. ...Show more