1. What is the purpose of the CAP? The common agricultural policy CAP is a system of...

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1. What is the purpose of the CAP?

The common agricultural policy CAP is a system of subsidies paid to EU farmers. Its main purpose is to guarantee minimum levels of production.

The policy costs around £30bn a year or half the EU’s £60bn annual budget.

Agreed reforms do not reduce this cost.

Source: The Guardian, June 26, 2013

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Foundations Of Microeconomics

ISBN: 9780063076280

7th Global Edition

Authors: Bade, Robin;Parkin, Michael

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