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Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1216:
Erneute EU-Agrarreform: Umbau statt Abbau von Subventionen

Jörg-Volker Schrader

Abstract: The paper discusses the decisions on the reform of the CAP from June 2003. The decisions focus on the decoupling of the direct payments to farmers from production. This will reduce production incentives and thereby improve the allocation of resources. However, payments to farmers will hardly be reduced in total but rather partly be redirected towards rural development policies, environmental policies and animal health measures. Since a consistent rationale for permanent payments to farmers is missing, payments should be stopped completely. The increase of financial support for rural development is the wrong way, since most measures, again, are interventions in favour of farmers.

Keywords: EU- Agrarreform, Landnutzung, Bodenrenten, EU Erweiterung, ländliche Entwicklung; (follow links to similar papers)

JEL-Codes: Q15,; Q17,; Q18,; Q2,; R52; (follow links to similar papers)

27 pages, July 2004

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