Implementation of the European Community's Common Agricultural Policy: expectations, fears, failures

Abstract

During the 1970s the European Community's Common Agricultural Policy (CAP), acclaimed only a decade earlier as prominent evidence of successful integration of member states, manifest major defects. Farm prices to the consumers increased continually, large surpluses of certain farm commodities accumulated, the cost of operating the CAP rose tremendously, and recurring changes of member state currencies made a shambles of the common price and market concept. Several general and specific causes of those problems can be identified. Strongly influenced by powerful national farm lobbies, the member governments have imposed their own interests, often at variance with the “common” interest, upon the Community decision-making framework. The large number of national officials participating in the CAP implementation process has tended to strengthen trends toward policy outcomes undesirable from the Community perspective. More specifically, the main cause for disrupting agricultural price and market unity has been the system of “green” currency rates and the monetary compensatory amounts (MCAs) which have provided the member governments with opportunities to reconstitute national control over farm prices. Fear of domestic political repercussions has restricted the creation of vigorous policies to counter surpluses, and structural improvement of farms, badly needed in some regions of the Community, has been slow.