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Politics and government of
the European UnionThe Common Agricultural Policy (CAP) is a system of European Union agricultural subsidies and programmes. It represents about 44% of the EU's budget (€43 billion scheduled spending for 2005[1]).
The CAP guarantees a minimum price to producers, imposes import tariffs and quotas on certain goods from outside the EU and provides a direct subsidy payment for cultivated land. Reforms of the system are currently underway, including a phased transfer of subsidy to land stewardship rather than specific crop production from 2005 to 2012. Detailed implementation of the scheme varies in different member countries of the EU, but a Single Payment Scheme for direct farm payments is being introduced in the UK. Direct payments are now made
Until 1992 the agriculture expenditure of the European Union represented nearly 61% of the EU's budget. By 2013, the share of traditional CAP spending will have almost halved (32%), following a decrease in real terms in the current financing period. In contrast, the amounts for the EU's Regional Policy represented 17% of the EU budget in 1988. They will more than double to reach almost 36% in 2013.[3]
