Rural Policy Challenges - Future of the CAP

Vásáry, Viktória (2013): Rural Policy Challenges - Future of the CAP. SSRN Electronic Journal. ISSN 1556-5068

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Abstract

Rural development in the European Union has to face several challenges such as increasing international competition among agricultural markets; growing needs for rural services (multifunctional agriculture); Eastern enlargement: increase in number and area of distressed regions and growing disparities; ageing, limited Community budget; unsustainability of the Common Agricultural Policy (CAP). Furthermore, among the so-called new challenges the climate change and water management (floods and droughts) need to be dealt with both on sectoral basis and interdisciplinary, in an integrated way. The paper intends to analyze and systematize the challenges facing the rural economy/rural development both from the point of view of sectoral and territorial approach. The question arises: is there any justification for the rural development to remain embedded in the CAP or the future is a separate autonomous common rural policy? As to the latter it is to be underlined that an updated rural development policy that is considered in a broad sense could be in line with the EU2020, too. It is aimed at analyzing and assessing adequate policy instruments and justified financial tools which could strengthen the integrated rural policy. The theory of new rural paradigm, new rural economy, the concept of multifunctional agriculture, European added value and common rural policy are applied by the author.

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