Five proposals for a European model of the countryside

The inability of European institutions to reform the common agricultural po licy is a landmark case of political failure. The CAP has led to several po licy failures. It helps mainly the well-off farmers in a very wasteful way; it provides excessive incentives for non-competitive primary commodities, specialization and intensification, with adverse impacts on rural natural r esources. Economic principles support long-term programmes aimed only at ma rket failures: the respect of environmental norms and the provision of rura l public goods in line with society's demands. While not interfering with m arket mechanisms, the instruments we propose acknowledge the diverse econom ic potential of European rural areas and the variety of goods and services provided by the rural space. Political feasibility and social concerns may require a transitory period of direct income support for current farmers. W e argue, however, against any direct payments for new farmers in order to p revent future dependence on Public support. Large established farmers are those who stand to lose the most from our pro posals. However, they and those who represent them have to face the ineffic iencies of the current policy and society's demands. Farmers deserve reward s from public funds for the rural public goods they provide, but these rewa rds should be decoupled and targeted A profound reform is required if we ar e to preserve a 'European model of the countryside'.