Think tank proposal for CAP

03 July 1997

Think tank proposal for CAP

The Centre for European Reform presented a proposal to replace the Common
Agricultural Policy (CAP) with a fund which would give European Union members
the right to decide how to distribute payments to farmers in their own
countries.

It says funds currently used for support payments under the CAP would go into
a Common Agricultural Fund. Each country would receive allocations based on its
past receipts. The countries could then distribute money according to their
priorities. Only existing members states would be included. Money for any new
members would come from a separate budget.

The left-wing think-tank believes its proposal could break the stalemate over
CAP reform. It would by-pass arguments over issues such as modulation. This is
the proposal that small farms should receive proportionately higher support.