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Comparative analysis of less-favoured areas payments in the EU states

Author

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  • M. Štolbová

    (Research Institute of Agricultural Economics, Prague, Czech Republic)

Abstract

The core objectives for rural development support for the period 2007-2013 are: (1) improving the competitiveness of agriculture and forestry, (2) improving the environment and the countryside, and (3) improving the quality of life in rural areas and encouraging the diversification of economic activity. The Council Regulation (EC) No. 1698/2005 includes an unambiguous targeting of smaller and micro-enterprises to sustain job opportunity in rural areas. For this scheduled period, a minimum funding of 10% of the total EU contribution has been withheld by the Council Regulation for the measures connected with the quality of life and diversification of the rural economy outside agriculture and forestry. In spite of this, the EU Court of Auditors has concluded that rural development policy in Europe is ineffective because it continues to allow member states to adopt a predominantly sectoral approach with the primary focus on the agricultural sector (Special Report No. 17/2006). This paper deals with the possible impact of one RDP measure - the reduction of LFA payments according to farm size. Taking into account the variety of regions in Europe and the different situations at national level, it is difficult to provide a single guideline to solve the problem. Implementation without a deep analysis could lead to undesirable consequences. A specific adjustment to the situation of the given country will be advisable.

Suggested Citation

  • M. Štolbová, 2007. "Comparative analysis of less-favoured areas payments in the EU states," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(10), pages 455-465.
    • Handle: RePEc:caa:jnlage:v:53:y:2007:i:10:id:1220-agricecon
    DOI: 10.17221/1220-AGRICECON
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