"The Restructured Cap and the Periphery of the EU"

Baltas, Nicholas C. (1995) "The Restructured Cap and the Periphery of the EU". In: UNSPECIFIED, Charleston, South Carolina. (Unpublished)

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Abstract

[From the introduction]. The purpose of this paper is to evaluate and examine in a broad sense the consequences of CAP reforms for the periphery countries of the Community. While there is no unique definition of which regions constitute the periphery countries of the Community, in terms of agricultural structure there are major differences between the periphery, mostly Mediterranean part of the Community, and the rest. For instance, in Greece, Ireland, Portugal and Spain agriculture's shares of income and employment in their national income and total employment respectively are significantly higher than in the other EU countries. Furthermore, farms in Spain, Greece and Portugal, on average are characterized by smaller sizes, lower labour productivity and higher shares of Mediterranean products, compared to farms in the north. For the purposes of this paper, and to facilitate the statistical work, the perphery regions of the EU will be considered to consist of those in the four countries mentioned above. The paper consists of six sections. The second section reviews agriculture in the periphery countries. In the next section an evaluation of the CAP prior to the McSharry reforms is provided while special reference is made of its effects on the periphery countries. In Section 4 are discussed the effects of the reform of the CAP on the agricultural sectors of the periphery countries. In Section 5, the conclusions are summarized and some policy implications are drawn. Finally, the recent developments in agricultural policy in the EU are described in the Appendix.

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