The CAP in disarray: EU commission proposes basic direct payments to EU farmers

Direct payments were originally justified as a mechanism to compensate farmers for the income loss incurred due to reduced intervention prices. However, this rationale is not valid any more, and a new justification for basic income support by granting basic decoupled direct payments has been proposed by the EU Commission. The article identifies a number of problems related to this proposal

[Full text of articles can be found in the Intereconomics Archive two years after the initial publication]

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