No. 34 The future of the Common Agricultural Policy 92 ANALYSIS AND PROSPECTIVE STUDIES CULTIVAR monitoring of ocean ecosystems to Europe's position in the Atlantic. However, the ORs face permanent and inherent constraints – insularity, distance from markets, fragmented topography and dependence on sea and air transport – which have a profound impact on agricultural activity. The legal recognition of these specific characteristics, enshrined in Article 349 of the TFEU, has enabled the creation of tailored instruments capable of mitigating structural costs. Any retreat from this principle would compromise not only the competitiveness of the ORs, but also the overall coherence of the CAP. A truly united Europe must be capable of accommodating the diversity of its territories, while ensuring that equal opportunities do not ignore the geographical inequalities that affect the entire agricultural production chain. For the Azores, POSEI is the backbone of regional agricultural policy. Its dual structure – the Specific Supply Arrangements (SSA) and measures to Support Local agricultural Production (SLP) – makes it possible to simultaneously meet the need to guarantee the supply of essential goods and promote the competitiveness of local production. In the case of the SSA, reducing the costs associated with importing raw materials and other essential goods is crucial to keeping production prices at levels compatible with those on the European mainland. Without this compensation, Azorean agricultural production would face additional difficulties due to transport costs, logistical volatility and the small scale of the markets. The SLP scheme is crucial for promoting local production, which is fundamental to the economic structure of the Azores. The aid granted under the SLP makes it possible to compensate for structural disadvantages, support investment, promote processing and ensure the maintenance of rural employment. It is undeniable that, without POSEI, agriculture in the Azores would not have achieved the level of development and stability it enjoys today. The European Commission's initial proposal to integrate or reduce the specific features of the instruments for the outermost regions would jeopardise regional production balances. A possible merging of POSEI with general CAP mechanisms could lead to cuts in appropriations, greater competition for funds with mainland regions and a reduction in the flexibility needed to tailor measures to the specific characteristics of the Azores. The impact would be particularly noticeable: 1. in increased production costs, if the SSA lost their ability to offset logistics cost increases; 2. in the loss of competitiveness of local production, if the SLP were to be absorbed by instruments less suited to the realities of island life; 3. in reduced financial predictability, which is essential for the multi-annual planning of farm holdings and processing units; 4. in increased vulnerability to external shocks, such as energy crises or supply chain disruptions. The amendments proposed by the European Parliament mitigate some of these concerns by reaffirming the need to maintain differentiated approaches and to strengthen the budget dedicated to the ORs. However, the final outcome will depend on interinstitutional negotiations and the ability of the ORs and their representatives to keep the 'OR reflex' at the heart of the next CAP cycle. Generational renewal and digital transition: challenges for the Azores Agriculture in the Azores faces structural challenges related to the ageing of the working population and the difficulty in attracting young people to the sector. The new CAP should strengthen support instruments for the establishment of young farmers, technical training, tax relief, early retirement and access to financing adapted to the realities of island life. Generational renewal policies cannot be dissociated from an integrated vision
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