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Cap Between First and Second Pillars: Looking into EU Spending on Agriculture

Author

Listed:
  • Fabrizio De Filippis
  • Roberto Henke

Abstract

In this paper we offer some reflections on the Cap reform process, starting from analysis of the objectives and the solidity of its two financial pillars. In the first part of the paper agricultural expenditure is re-classified on the basis of major Cap intervention typologies, showing how a process of de-specialisation and overlapping of measures between the two pillars is at work. In the second part various financial resource allocation criteria are analysed in the light of the weight attributed to different combinations of five macro-variables: direct payments, disadvantaged area allowances, agricultural area, environmental measures, sector modernisation measures. More in general, the paper sheds light on the necessity to review the two-pillar structure of the Cap and revise its objectives and tools in order to make it more sustainable and more equitable in the long run.

Suggested Citation

  • Fabrizio De Filippis & Roberto Henke, 2010. "Cap Between First and Second Pillars: Looking into EU Spending on Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.
    • Handle: RePEc:rar:journl:0188
    as

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    References listed on IDEAS

    as
    1. Alan Randall, 2002. "Valuing the outputs of multifunctional agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 289-307, July.
    2. Rabinowicz, Ewa, 1999. "Redesigning the CAP to Meet the Challenges of EU Enlargement and the WTO: What Can Agricultural Economic Research Contribute?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 265-281, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Community budget; Cap reform; Direct payments; Rural development; New member states; Public goods;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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