Com. Agriculture policy in EU

Com. Agriculture policy in EU

1. One of the original pillar of EC

   • founders: BENELUX countries + ITA, DEU, FRA

2. The treaty of Rome -> principles and objectives of CAP 1958:

   • Increase productivity -> technical progress +optimum use of the factors of production
   • Fair standard of living for the community
   • Stabilise Market
   • Secure aviavility of goods and supplies
   • Food= good value for the money
   • No changes of objectives

3. "Wine Lakes" - 1980's

   • NO MARKET-for good produced
     • Were stored and later sale atlower global market prices

4. Was the most expensive of EU's policies

   • With enlargment-> lesser part of overall budget

5. To direct cost EU consumers pay approximately €50bn more in higher food cost

   • Payment linked to animal welfare and environmental targets.
     • Sugar regime-cuts guaranteed prices, aims to reduce overall production significantly. EU's sugar beet < Overseas

6. Since 1990's instead of productions, farmers are given direct payment

7. Today :

8. Benefits:

   • FRANCE- largest recipient- 20% of funds
     • 2/3 goes to DEU, ITA, ESP, UK
       • Largest per capita payments to Greece and Ireland
         • EU farmers receive aprox. 74 % of funds

9. EU subsidising farmers and distorting markets

10. Financies:

    • Gross Nat. Income
    • Duties on Import
    • Taxes base