Friedrich Heinemann, Stefani Weiss, 26 October 2018

The EU’s Common Agricultural Policy for the decade ahead is beginning to take shape. This column argues that, as it stands, the policy fails to ensure public goods provision for the EU at large, and the lack of clarity on its payment terms are a concession to pressure from farmers’ lobbies. Without significant changes in the final stages of negotiation, the CAP could become an enormous waste of resources while providing little or no ‘European added value’.

Valentin Zahrnt, 22 July 2009

The 2013 Common Agricultural Policy reform will involve EU members competing with each other for subsidy funds. This column calculates potential CAP payments under three different reform scenarios to identify winners and losers. Several traditional defenders of the CAP are indeed likely to lose from reform, but other countries that defend the status quo would – surprisingly – gain from reform.

Ricardo Caballero, 20 April 2009

The approaching release of stress-test results is accompanied by widespread fears that the tests are not rigorous enough. This column argues that a modification to the Capital Assistance Programme would neutralise these concerns. Banks should hold the capital implied by the central scenario, and buy government insurance to cover more extreme outcomes, thus taking the aggregate risk off the leveraged institutions and breaking the link between bad economic news and the financial sector’s health.

Mika Widgrén, 23 May 2008

The EU budget is supposed to reflect benevolent principles, but some suspect that baser motives may guide member states bargaining over the allocation. This column summarises evidence demonstrating that power politics play a large role in building the EU budget, while benevolence is rather lacking.

Kym Anderson, Tim Josling, 13 September 2007

Even though the CAP has been heavily reformed over the past 15 years, it continues to support major unproductive sectors of European agriculture. This has helped to frustrate the WTO trade talks and to embarrass the EU's broader commercial policy agenda.

Richard Baldwin, 05 December 2005

Written December 2005: The reformed CAP pays billions to wealthy landowners, including the Queen of England. Thanks to the British Freedom-of-Information Act the exact amounts are known; basic accounting calculations reveal how much each EU member pays to the Queen.


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