The paper discusses the decisions on the reform of the CAP from June 2003. The decisions focus on the decoupling of the direct payments to farmers from production. This will reduce production incentives and thereby improve the allocation of resources. However, payments to farmers will hardly be...

The paper discusses the decisions on the CAP in the context of the Berlin summit. In a rather broad perspective the agricultural sectoral and related objectives are analyzed for their consistency and compatability with higher ranking societal objectives. The policiesÂ’ allocational and...