Illustration of the Significance of a Political Cooperation within the Agricultural Sector
Dr. Mojmir Mrak, Dr. Vasja Rant UNIVERSITY OF LJUBLJANA FACULTY OF ECONOMICS Economics Policies of the EU
Why does the EU need the Common agricultural Policy?
Kujtim Islamaj Erasmus Exchange ID#: 19534497 kujtim.islamaj@gmail.com Matevž Gantar Information Management ID#: 19467790 gantarmatevz@hotmail.com Study year: 2011/12 Submission Date: 14th December 2011
Andreas Tichonenko Erasmus Exchange ID#: 19535771 andreas.tichonenko@gmail.com
Executive Summary
The following research paper is focused on the illustration of the significance of a political cooperation within the agricultural sector. Since more than 40 years the Common Agricultural Policy (CAP) constitutes one of the most important and financial significant policies of the European Union (EU). In the early fifties, the member countries of the European Economic Community (ECC) were hardly able to supply their population with agricultural products. The reminiscence of hunger and food shortage during and after the Second World War characterized the mindset of the politicians. They prioritized to overcome the lack of food and to ensure the supply of the population in the long run. Since its establishment, the primarily beneficiaries of the CAP are the farmers. From the beginning, one of the main objectives was to ensure the income of the farmers. The regularity of the income is quite important in a sector, which is particular vulnerable for losses caused by uncontrollable weather conditions. The advantages for consumer are also numerous. These comprise, inter alia, the increased diversity of products, the cost for agricultural products, which have remained relatively stable and the increased quality of food by uniform determined quality and health standards. From the political perspective, the benefits of the CAP are tremendous. By the CAP, it has been prevented the ruinous competition, where underbidding of prices between the concerned parties would have taken place. The CAP exhibits also negative
Why does the EU need the Common agricultural Policy?
Kujtim Islamaj Erasmus Exchange ID#: 19534497 kujtim.islamaj@gmail.com Matevž Gantar Information Management ID#: 19467790 gantarmatevz@hotmail.com Study year: 2011/12 Submission Date: 14th December 2011
Andreas Tichonenko Erasmus Exchange ID#: 19535771 andreas.tichonenko@gmail.com
Executive Summary
The following research paper is focused on the illustration of the significance of a political cooperation within the agricultural sector. Since more than 40 years the Common Agricultural Policy (CAP) constitutes one of the most important and financial significant policies of the European Union (EU). In the early fifties, the member countries of the European Economic Community (ECC) were hardly able to supply their population with agricultural products. The reminiscence of hunger and food shortage during and after the Second World War characterized the mindset of the politicians. They prioritized to overcome the lack of food and to ensure the supply of the population in the long run. Since its establishment, the primarily beneficiaries of the CAP are the farmers. From the beginning, one of the main objectives was to ensure the income of the farmers. The regularity of the income is quite important in a sector, which is particular vulnerable for losses caused by uncontrollable weather conditions. The advantages for consumer are also numerous. These comprise, inter alia, the increased diversity of products, the cost for agricultural products, which have remained relatively stable and the increased quality of food by uniform determined quality and health standards. From the political perspective, the benefits of the CAP are tremendous. By the CAP, it has been prevented the ruinous competition, where underbidding of prices between the concerned parties would have taken place. The CAP exhibits also negative
References: 28 European Commission (1957): The Treaty of Rome 30 European Parliament (2009): The Common Agricultural Policy in Figures 31 International Monetary Fund (1988): The Common agricultural policy of the European Community, Principles and Consequences