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The Impact of the Common Agricultural Policy of the European Union on the General Price Level of Countries that Joined in the Period from 2004 to 2007

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  • Stojanović Ivana

    (University of Niš, Faculty of Economics, Republic of Serbia)

Abstract

Application of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade), the community’s priority in meeting the needs for agricultural products (protection against imports) and the existence of financial solidarity (joint financing). Joining the European Union for new member states implies the termination of the implementation of the existing national agricultural policy and the the beginning of the implementation of the CAP. Although membership in the European Union implies many advantages, the period after joining this community can be quite economically unstable for some countries. One of the most significant problems is an increase in agricultural product prices and a rise in the general price level (inflation). The above can be confirmed by a simple empirical analysis of the economic indicators of the countries that joined the EU together in the period from 2004 until 2007.

Suggested Citation

  • Stojanović Ivana, 2019. "The Impact of the Common Agricultural Policy of the European Union on the General Price Level of Countries that Joined in the Period from 2004 to 2007," Economic Themes, Sciendo, vol. 57(2), pages 233-255, June.
    • Handle: RePEc:vrs:ecothe:v:57:y:2019:i:2:p:233-255:n:7
    DOI: 10.2478/ethemes-2019-0014
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    References listed on IDEAS

    as
    1. John Lewis & Karsten Staehr, 2010. "The Maastricht Inflation Criterion: What is the Effect of European Union Enlargement?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(3), pages 687-708, June.
    2. Stephen G Cecchetti & Richhild Moessner, 2008. "Commodity prices and inflation dynamics," BIS Quarterly Review, Bank for International Settlements, December.
    3. repec:bla:jcmkts:v:48:y:2010:i::p:687-708 is not listed on IDEAS
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    More about this item

    Keywords

    agrocultural policy; CAP; EU; European Union; inflation; general price level;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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