Analysis of the EU Common Agricultural Policy (CAP) and of the Health Check Reforms Relating to the Single Area Payment Scheme (SAPS)

Abstract

The agriculture policy is a vital part of the economical policy. In terms of financing, the EU agricultural budget 2009 represents 41,9% of the general EU budget, which finances the direct aids and market related expenditures (first Pillar), rural development measures (second Pillar) and fishery sector. The CAP reform (2003) had brought out changes for Member States and their farmers such as decoupling of the most direct payments by replacing them with Single Payment Scheme (SPS) and Single Area Payment Scheme (SAPS). Moreover the implementation of Cross-Compliance rules links the full support of direct payments to the farmers respecting environmental, food safety, animal and plant health and animal welfare requirements established at EU and national and regional level. Cross-Compliance means for the EU farmers two types of requirements, the Good Agricultural and Environmental Conditions (GAEC) and the Statutory Management Requirements (SMR) which should be respected by the farmers in order to receive their full amount of direct payments. The Health Check (2009) intended to modernise and simplify the CAP. As its results, ten Member States out of EU-12 have been allowed to prolong the period of paying Single Area Payment Scheme (SAPS) until the end of 2013 instead of 2011. Thereby the New Member States have a longer period to adapt to the regulations for the system of Single Payment Scheme that comprehends higher requirements.