Abstract
Direct payments were originally justified as a mechanism to compensate farmers for the income loss incurred due to reduced intervention prices. However, this rationale is not valid any more, and a new justification for basic income support by granting basic decoupled direct payments has been proposed by the EU Commission. The following paper identifies a number of problems related to this proposal.
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Koester, U. The CAP in disarray: EU commission proposes basic direct payments to EU farmers. Intereconomics 47, 170–174 (2012). https://doi.org/10.1007/s10272-012-0417-8
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DOI: https://doi.org/10.1007/s10272-012-0417-8