EU Economy Essay Example | Topics and Well Written Essays - 3250 words

EU Economy - Essay Example..5 4.2 Pillar 2...5 5.0 Past Reforms 5 5.1 hoodlum Expenditure and CAP Reform Path.. 6 6.0 Various Perspectives on Proposed Reforms.6 6.1 Farmers View point...6 6.2 NGOs Perspective..7 6.3 Research Institutes and Experts Opinions7 7.0 Does the CAP Defy Trade Theory?........................................................9 8.0 Ricardos Comparative Advantage Theory and the CAP9 9.0 Heckscher and Ohlin Theory and the CAP10 10.0 Ground for Choices 10 11.0 Guiding Principles for Reforms..11 11.1 Global Food Security..12 11.2 Environment Initiatives. ... Initially, during 60s, it was formulated to increase the agricultural intersection and achieve food security. Since then much has changed at the global level and the world has progressed to trading in a tariff-free regime under the auspices of domain of a function Trade Organization. It has been agreed that resources are scarce and must be harnessed efficiently to enhance economic wealth of the nations inward ly EU. The existing CAP within EU with direct payments on per hectare basis does not make any sense. The agricultural subsidies cost huge proportion of the EU budget. Providing export subsidies to produce superfluity to dump it in the international market at the cost of developing countries, especially poor African countries, defy the basic probity and economic sense. brush reforms are needed that can take care of environmental issues, climate mitigation, reduce water pollution, support efficient farming and rural development, provide bewitching international competition and encourage innovation in agriculture increasing productivity levels. Introduction This policy paper is for the attention of the Agricultural Commissioner, EU and is knowing to explore whether the CAP should be reformed, and if so then in what way it should be modified to address the current issues. The paper is structured around intellect existing CAP and its relevance in reference to various economic theori es that economists have proposed in last few decades to enhance the global wealth. It will purport into various perspectives on proposed reforms and the available choices to address environmental issues. The paper finally provides concrete recommendations on the future CAP. Historical Account The Common Agricultural polity (CAP) had its modest beginning in 1962. Since