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

EU Economy - endeavor Example..5 4.2 Pillar 2...5 5.0 Past Reforms 5 5.1 ceiling Expenditure and CAP Reform class.. 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 hold 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 boorish production and achieve food security. Since then much has changed at the global level and the world has progressed to work in a tariff-free regime under the auspices of World Trade Organization. It has been agreed that resources are infrequent and must be harnessed efficiently to enhance sparing wealth of the nations within EU. The exist ing CAP within EU with direct payments on per hectare basis does not make any sense. The agricultural subsidies equal huge proportion of the EU budget. Providing export subsidies to produce surplus to dump it in the international trade at the cost of developing countries, especially poor African countries, defy the basic probity and economic sense. Sweeping reforms are needed that can take care of environmental issues, climate mitigation, reduce water system pollution, support efficient farming and rural development, provide fair international competition and encourage variety in agriculture increasing productivity levels. Introduction This policy paper is for the attention of the Agricultural Commissioner, EU and is designed 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 understanding existing CAP and its relevance in reference to various economic theories that economi sts have proposed in last few decades to enhance the global wealth. It result look 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 Policy (CAP) had its modest beginning in 1962. Since