Abstract

The Common Agricultural Policy is one of the most regulated and yet most controversial EU policies. Over the past decades, it has become an important tool to support farmers in the fight against climate change and sustainable management of natural resources. The article aims to study the features and directions of the EU's common agricultural policy from its origins to modern transformations, along with an analysis of environmental taxation’s impact on agriculture. The study was conducted using general methods, namely: analysis, synthesis, induction, and generalization. The article considers the objectives and financing of the CAP. It is determined that the new Common Agricultural Policy retains the existing financing architecture. It is established that in recent years, the CAP has undergone several reforms to become not just a tool for direct support of agricultural producers, but a driving force for sustainable rural development and greening of agricultural production at the EU level through the introduction of eco-schemes (voluntary environmental protection measures). This reorientation has become a key goal of the MTP, which should stop the current environmental degradation and biodiversity loss and ensure a fair distribution of financial support for small and medium-sized farms, which will become the center of safe food. It is determined that as part of the implementation of the new policy, each state must develop a national strategic plan describing the MTP instruments based on the analysis of its current conditions and needs to achieve the goals of the European Green Deal, a feature of which is the possibility of its annual adjustment and improvement. The new MTP also provides the support for young farmers to promote rural areas. Keywords: common agricultural policy, environmental taxation, agriculture, CAP funding, financial policy, ecologization, eco-schemes, reform of the CAP, the EU green deal.

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