The Common Agricultural Policy — Solutions in Sight

Abstract

Why a Common Agricultural Policy (CAP)? There are at least three reasons why the Community embarked upon such a costly policy whereby it aimed at setting common agricultural prices administratively. First, all governments do something for their farmers. Second, there was the so-called “great grain deal” between France and the former West Germany, whereby France, in exchange for German dominance in the industrial sectors, would be assured of her place as the Community’s granary. Then, third, as is shown in Table No. 1, in the 1950’s, there were a lot of farmers in the Community and it was understood that something would be done to ensure a fair share for the farmers in the expected future prosperity of the EEC. This particular point is quite clearly laid down in article 39, section 1(b) of the Treaty of Rome.¹