THE EUROPEAN UNION’S COMMON AGRICULTURAL POLICY AND DEVELOPMENT OF AGRO-FOOD SECTOR IN GREECE

Abstract

The article analyzes the Common Agricultural Policy of the European Union (EU), reforms and consequences in agricultural sector of Greece. Since its inception, the Common Agricultural Policy has been the subject of many reforms that are being developed to meet the changing needs of society, market and competition of the European Union’s (EU) rural economy with other alliances around the world. Of particular interest is the development of agricultural sector in Greece in the last 36 years, following its entry into the European Union. The contribution of agriculture (including agriculture, forestry and fisheries) in the Greek economy over the last 15 years has been significantly reduced. Data show a small trend in concentration of production and an increase in agricultural crop yield. There is an imbalance, which is reflected in large fluctuations in types of agricultural products. This applies to the volume of basic food production, which is governed by the economic policy of the European Union, expressed in product quotas and their production volumes. This leads to gradual decline in production, which is reflected in the need to meet domestic demand for plant and livestock foodstuffs, such as common wheat, legumes, sugar, lemons, more animal products and mainly meat. At the same time, imports of similar products from EU Member States are increasing, exacerbating the negative trade balance between the EU and the Republic of Greece. It is noted that the volume of subsidies in the EU remains at the same level, additional subsidies for farmers are gradually decreasing and the system of linking subsidies with production volume has been partially eliminated. The most effective support mechanisms for farmers will minimize the negative impact on the reduction of the overall financing in agricultural sector. The money saved as a result of reduction in subsidies will be spent on development of rural areas and improving effectiveness of structural policies. Also, comparative data are presented for other states of the European Union.

Keywords

• Greece
• EU common agricultural policy
• agro-food sector
• European Agricultural Fund for rural development