Developments in the Common Agricultural Policy of the European Community

Extract: Present trends in the Common Agricultural Policy (CAP) of the European Community (EC), particularly increasing expenditures for agricultural support, will seriously affect the EC's ability to meet other policy needs and hinder enlargement of the Community to include Spain and Portugal. EC policymakers must either keep prices low directly or with producer taxes, or limit quantities covered by support measures. This report examines directions which the CAP may take in view of budgetary and enlargement pressures and indicates potential changes in EC policy.