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• W165693766 abstract "Introduction The expansion of the European Union (EU) in 2004 and 2007, which included ten post-Communist countries from Central and Eastern Europe (CEE), was one of the most challenging tasks the EU has ever faced. This has been particularly evident in the case of accommodating the agricultural sectors of the CEE countries to the Common Agricultural Policy (CAP), the oldest and most-criticized policy of the EU. Full and fast integration of the immense and un-restructured CEE agricultural sectors into the CAP, right after the accession, was considered hugely problematic, if not unfeasible. Clear differences between the agricultural sectors of the old and new member states called for a number of transitional periods and new measures which created de facto a two-tier CAP. Fundamentally, the CAP had changed substantially in the years preceding the CEE countries' accession to the EU. Basic objectives of the policy, notably increasing agricultural productivity, ensuring food security, market stability, a fair standard of living for the farm community and reasonable prices for consumers, remained unaltered. However, the CAP's instruments and support systems underwent extensive revision and modernization. The MacSharry reform of 1992, which coincided with the Uruguay round negotiations on agriculture under the General Agreement on Tariffs and Trade (GATT), was the first serious attempt to improve the policy. Further attempts, driven mainly by the need to make the policy more compatible with the World Trade Organization (WTO) requirements, were made in 1999 and 2003. As a result, the CAP moved away from clearly trade distorting price guarantees to direct income payments, which, in principle, had been decoupled from production and linked to some basic legal standards for farming which included i.e. standards concerning the environment (cross-compliance). Also, the second pillar of the CAP, covering rural development policy, was established and then strengthened. Since the CAP ceased to focus on production and price guarantees and started to directly support farm incomes, the CEE countries' accession and integration into CAP structures was widely expected to entail serious budgetary costs for the EU. Low agricultural productivity in the CEE countries heralded rather moderate expenses for the market support measures, but high agricultural employment implied that the CAP's budget costs related to direct payments would have to increase significantly. At the outset of the 2000s, over 8 million people were still employed in agriculture in the CEE region (European Commission 2002). Not surprisingly, the EU-15 wished to limit the budgetary costs of agricultural support in the new member states, arguing that direct payments were inadequate for transition economies. Instead, the CEE negotiators fought for the best financial conditions of integration with the CAP, and particularly for direct payments, which were considered indispensable for increasing farm incomes, agricultural competitiveness and production potential. Eventually, a compromise solution that would ensure new members would be included in the system of direct payments was agreed, although it was decided that payments would start at 25 percent and would reach 100 percent of the level of payments applicable in the EU-15 only after ten years (phasing-in) in 2013 in case of the 2004 entrants, and in 2016 in case of Bulgaria and Romania. It was agreed that payments would be distributed in a simplified scheme, called Single Area Payment Scheme (SAPS), based on flat rates of aid, i.e. the same level of payment per hectare for all farmers. These new member states were also given an option to pay their farmers complementary national direct payments during the transitional period to reduce the gap between the rate of payments in the EU-15 and the payments under the phasing-in mechanism. The first ten years of the CEE countries' membership in the EU indicate that, despite initial fears, integration into the agricultural sphere has been quite successful. …" @default.
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• W165693766 date "2014-06-22" @default.
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• W165693766 title "The Impact of Central and Eastern Europe on the Common Agricultural Policy" @default.
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