The book "CAP and The Regions: The Territorial Impact of the Common Agricultural Policy," funded by EU institutions, was released and the view from the authors coincide with UK's proposition on EU budget in previous EU meeting in July...
According to the book, the authors found that "rich core regions" locate in Germany, Britain, France and the Netherlands and so these countries acquire greater proportion of subsidies than other EU less wealthy members like Spain, Italy, Poland etc. Besides, the authors analysed the 2 pillar of subsidies, and it is noted that Pillar 1 (90Bn euros) favours absolutely prosperous "rich core regions" as these areas produce grain, milk and beef, while Pillar 2 (4.6Bn euros) goes the same way as "rich core regions" support more environmentally friendly farming. This is not unanticipatable. With this logic, near 80% of CAP would go to 20% of farmers from "rich core regions", which result in uneven distribution of financial aid.
So what do the authors propose? Pillar 1 aid should be redistributed gradually to Pillar 2, aiming at less direct subsidies and more environmental friendly development to the farming industry. Yes or no, the principle question for me is if the concept of EU works, should we categorise members into rich and poor countries? should the objective be evenly distribution of subsidy to the nations? Or would the simple economic theory of comparative advantage works? The problem rises because some nations find unfair to allocate the shared EU budget, but well, this is exactly the current circumstance faced by EU when executing a collective plan or seeking a judgement. The difference of standard of living and economic environment exactly bring out endless debates and controversary. A more flexible administrative measures according to the economical situation should be thought about, though this is not an easy task.
Another observation is about the farming industry in this world. With the monotonic direction of global economic development, farming industry does not seem profitable in most so-called "developed" countried. With the developing countries like China moving quick to catch the global footsteps of economic enjoyment, the unevitable sacrification of primary production would be a problem of globalisation...
For more information about the CAP reform, please check also: http://europa.eu.int/comm/agriculture/capreform/index_en.htm
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