Abstract

The Common Agricultural Policy (CAP) of the European Community (EC) has been criticized for causing a misallocation of resources, inequitable income transfers, and enormous budgetary costs. The purpose of this paper is to examine the political economy of agriculture and agricultural policy in the EC. The results of the analysis indicate that conflicts between national political objectives and broader, community-wide concerns are important factors in the performance of EC agriculture. The pressures for reform of the CAP will lead to modification of the system, but changes in EC agricultural policy are likely to be moderate because of the inherent inertia of the policy-making process. As a result, the agricultural system in the EC will probably continue to evolve in an atmosphere of crisis with most reforms directed at symptoms rather than fundamental problems