Which system of direct payments to farmers should Poland select: standard or simplified?

The paper discusses which direct payment system Poland should select. It points to two important aspects: the first is associated with the role played by the balance of payments between the EU budget and Poland in the public debate on the consequences of the first few years of Poland's membership in the Union. EU negotiation proposals to date (a full membership fee paid into the EU budget jointly with a major reduction of easily absorbable transfers) constitutes a serious threat in that Poland may initially pay more into than receive from the EU budget. This threat can be reduced by ensuring a fuller utilisation of funds earmarked for agriculture thanks to the simplified system and initial modification of the expense structure. The second aspect lies in increasing, through the simplified system, the number of CAP beneficiaries in Poland by several hundred thousand farms (uniquely as a result of giving them access to funds that would not be utilised under the standard system), which may have great significance (be it only psychological) on shaping a participatory attitude among the rural population with respect to the accession process.

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