Changes in the mechanism of direct support and agricultural markets stabilisation in the aspect of the CAP “Health Check” proposals
2009
Czyzewski, A., Poznan Univ. of Economics (Poland) | Stepien, S., Poznan Univ. of Economics (Poland)
The Health Check communication provides a complex series of ideas for further development of the CAP. The Commissioner's proposals try to ask more searching questions about the purpose of the Common Agricultural Policy and the challenges it faces in the decades ahead and thence the directions in which it must evolve. The main aim of this paper is to present the concepts of the changes of the EU agricultural basic support mechanisms directions accepted within “Health Check” review and their evaluation in view of the EU agricultural markets stabilisation. The authors will focus on those aspects of medium-term review which according to them are the most crucial to further EU agricultural development. Analysing final proposals, they conclude that the EU farming on account of its specific character should still be supported and should not fully be subjected to market rules, and simultaneously it must preserve its common character. The support reorientation form market one to the single payments should be assessed positively as a more efficient method in stabilising farming incomes. A step in a good direction is the strengthening the financing of rural areas via the modulation system, since Pillar II plays an important modernisation and pro-development role, and further more it meets the social expectations. In a situation of new challenges it is necessary to implement efficient methods of risk management such as: the new insurance against natural disasters and animals’ diseases insurance.
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