CAP Reform, the Berlin Summit, and EU Enlargement

Jörg-Volker Schrader

No 973, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The paper discusses the decisions on the CAP in the context of the Berlin summit. In a rather broad perspective the agricultural sectoral and related objectives are analyzed for their consistency and compatability with higher ranking societal objectives. The policies' allocational and distributional consequences are assessed in a qualitative manner by comparing them with a hypothetical first-best policy. The analysis focusses on the distortions in land allocation between agriculture, forestry and environmental purposes as well as on distributional consequences, taking into account the envisaged eastern enlargement. Among the consequences are excessive budget outlays and high economic rents for landowners, who are increasingly no active farmers themselves. Finally, problems of implementing a liberal CAP reform are discussed.

Keywords: CAP reform; land allocation; land rents; EU enlargement; rural development (search for similar items in EconPapers)
JEL-codes: Q15 Q17 Q18 Q2 R52 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:973

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