The Impact of the CAP on Agriculture and Rural Areas of EU Member States

Abstract

The article presents the main aspects of the Common Agricultural Policy (CAP) while also exploring the contextual parameters and impact on agriculture and rural areas of the European Union (EU) member states. CAP is one of the most important policies of the EU, having for decades occupied the major share of the region’s budget and had profound effects on farm structures, agricultural employment and rural areas, as well as wider economic, social, political, environmental and cultural implications, for old and new member states. The article is organized in five sections. The introductory section offers a brief account of the basic dimensions of the newly reformed CAP, which suggest how the CAP is destined to evolve in the near future. The next section is dedicated to the analysis of farm structures, agricultural and regional employment, agricultural incomes and regional development. The third section deals with the evolution of the CAP objectives, as well as the drivers connected to the recent CAP reforms. Next, there is a comprehensive presentation of the CAP impact on agriculture and rural areas of the member states. Finally, a number of conclusions are drawn regarding the path dependency of the CAP and its continued inefficiency on lowering social and spatial inequalities in rural areas.