No. 34 The future of the Common Agricultural Policy 60 ANALYSIS AND PROSPECTIVE STUDIES CULTIVAR The Treaties form the basis of European Union (EU) law and define its objectives, principles and functioning. The Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) are currently the main agreements in force. The Common Agricultural Policy (CAP) has evolved continuously since its creation in 1962, with two major paradigm shifts. The first was the shift in emphasis from market support (what to produce) to producer support (how to produce), and the second was the evolution from producer support to the growing importance of environmental and climate action support (how to contribute to the EU's objectives in this area). Evolution of the EU Treaties1 Evolution of CAP Reforms 1957: Treaty of Rome Establishes the European Economic Community (EEC) and the European Atomic Energy Community (Euratom). Common Market: Creates a common market, in which signatory countries agree to gradually harmonise their economic policies. Customs Union: Associated with a Common Commercial Policy Common Policies: The Treaty establishes common policies among member countries, namely: • Agricultural Policy (Articles 38 to 47); • Commercial Policy (Articles 110 to 116); • Transport Policy (Articles 74 to 84). Solidarity policies were also initiated through the European Social Fund (ESF) and the European Agricultural Guidance and Guarantee Fund, Guidance Section (EAGGF-G). 1962: EU Common Agricultural Policy (CAP) focused on encouraging production – price support Objectives: a) To increase agricultural productivity through technological development, by promoting the rational development of agricultural production and the optimal use of production factors, particularly labour. b) To ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of those working in agriculture; c) To stabilise markets; d) To ensure security of supply. e) To ensure reasonable prices for consumers. 1992: Treaty on European Union (TEU) / Maastricht Treaty Establishes the European Union, marking a step forward in political integration, in addition to the economic dimension. Establishes support through structural funds (EAGGF, ESF, ERDF – European Regional Development Fund), the European Investment Bank and other existing financial instruments. In 1994, the Cohesion Fund was created with the aim of contributing to the correction of the main regional imbalances in the Union by participating in the development and structural adjustment of less developed regions and in the conversion of declining industrial regions. 1992 reform • Focus on producers – direct aid to farmers and production quotas. • The European Parliament, the Council and the Commission, as well as the Member States (MS), must take animal welfare requirements into account when drafting and implementing Community legislation in the areas of the CAP, transport, the internal market and research. 1997: Treaty of Amsterdam Amends and consolidates the TEU and the treaties establishing the European Communities. • Updates and clarifies the Maastricht Treaty on European Union. • The substantial amendments introduced were also designed to prepare the EU for its future enlargement. The special characteristics and constraints of the outermost regions are taken into account, without undermining the integrity and coherence of the Community legal order, including the internal market and common policies. 1999 reform – Agenda 2000 strengthens the CAP by: • the creation of a second pillar dedicated to rural development, focused on –increasing the competitiveness of the agricultural sector, –providing alternative sources of income, –and strengthening social cohesion in rural areas. 1 Source: https://www.europarl.europa.eu/about-parliament/pt/in-the-past/the-parliament-and-the-treaties
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