European Agricultural Policy: The Regional Dimension

The Common Agricultural Policy (CAP) of the European Economic Community has always changed in response to the changing economic situation and political pressure, but the general thrust of the policies embo died therein has not changed very much. Recently there has been increasing pressure to change this overall thrust, but it is obvious that the changes which will be brought about will be a compromise between what is economically and socially desirable as far as the Community as a whole is concerned, and what is politically acceptable to the respective member states. There are many arguments put forward as to why the CAP should be changed. First, there is the argument about the high price paid for agricultural produce and the loss incurred in disposing of the surpluses generated; in 1980, for example, 42 per cent of the guarantee expenditure of the CAP was spent in disposing of the EEC milk surplus alone (Commission of the European Communities, 1981a). Second, there is the argument that because of controls on imports and the dumping of EEC produce on the world market, world trade and prices are distorted. Third, there is the argument made in particular by Britain that despite the fact that it is one of the poor countries in the Community, contributing the second largest share to the budget, it receives the smallest per capita share from the CAP. Fourth, there is the argument that the CAP absorbs up to 75 per cent of the total EEC budget, which is approaching its maximum under the Treaty of Rome, and that too little is left for the other policies which the Community would like to implement. And indeed there are still further arguments. However there is far too little discussion on