Working Paper: The Case for Co-Financing the CAP

The Common Agricultural Policy (CAP) was set up in a time when the memory about post-war food shortage was fresh, Europe was a large net importer of agricultural products, agricultural production was highly labour-intensive and significant shares of the work-force received their major income from the agricultural sector. Today, agricultural production is capital-intensive with a low share of total labour employed and food spending. Read in this paper by network member Friedrich Heinemann/ZEW why CAP in its current size is still part of the problem and which conclusions should be urgently drawn.