EU Policies

Common Agricultural Policy

After a long negotiation process started in 2018, the last CAP reform is coming to an end and the new CAP will come into force in January 2023, following a two-year transition period. Discover AREPO actions to achieve the right recognition of quality and origin products in the new CAP.

Introduction

The Common Agricultural Policy (CAP) of the European Union, launched in 1962, is a common policy to all EU Member States which has the following objectives (Article 39 TFEU):

  • increasing agricultural productivity by developing technical progress, ensuring the rational development of agricultural production as well as better use of the factors of production, in particular labour;
  • a fair standard of living for the agricultural community, with the common organisation of agricultural markets (CMO) and respect for the principles of price uniqueness, financial solidarity and Community preference;
  • the stabilisation of markets;
  • security of supply;
  • reasonable prices for consumers.

The CAP is managed and financed through the EU budget through the European Agricultural Guarantee Fund (EAGF), which provides direct support and finances market support measures, and the European Agricultural Fund for Rural Development (EAFRD), which finances rural development. Payments are managed at national level by each EU country.

Current developments

Confronted with market changes, the environmental impact of agriculture and the growing demand for quality food, CAP has been subject to several reforms since 1992.

The review process was officially opened on 1 June 2018 with the presentation by the European Commission of new legislative proposals on the future of the CAP after 2020.

In June 2021, the European institutions reached a political agreement on the future of the CAP.
The three regulations were signed and published in December.

Currently, the Commission has started assessing the member states’ strategic plans to present their feedback.

After a two-year transition period, the new CAP will come into force from 2023.