95098

only tliree directives on agricultural reform were approved in 1972 (modemization of agricultural holdings, abandonment of farming and training of farmers).

■    1975 - initiatives were taken to provide assistance to farmers working in difficult conditions;

■    1979 - a 'co-responsibility' levy requiring farmers to pay a penalty for serious over-production was introduced in the dairy secton

■    by tlie 1980s tlie EU had to contend with almost permanent surpluses of the major farm commodities;

■    1984 - tlie production quota system, already applied to sugar, was extended to milk, in order to limit the snrphis of production in the Commnnity;

■    1988 - the budgetary guidelines set a maximum ceiling for the CAP budget:

'stabilisers' tliat set a maximum limit on quantities guaranteed to receive support payments,

a new approach to Community stnictural policy tliat favored a morę effective, global strategy for rural and less favored areas.

■    1992 - the MacShany reform started tlie sliift from prodnct support (through prices) to producer support (through income support);

tlie reform aimed to improve tlie competitiveness of EU agriculture, stabilize the agricultural markets, diversify the production and protect the environment, as well as stabilize the EU budget expenditure;

direct payments were introduced in order to compensate for the decrease of tlie price support (cereal guaranteed prices were lowered by 35%, and beef prices by 15%);

compulsory set-aside and other accompanying measures (agri-environment programs, afforestation. early retirement, diversification) were also introduced.

■    Agenda 2000 - established economic, social, and environmental goals witliin a new reformulated set of objectives for tlie CAP consistent witli tlie requirements of the Amsterdam Treaty;

Objectives:

❖    morę market orientation and increased competitiveness,

❖    food safety and quality,

•> stabilization of agricultural incomes,

❖    integration of environmental concems into agricultural policy,

❖    developing the vitality of rural areas,

❖    simplification and strengthened decentralization.

■    a new rural development policy was introduced as a second pillar of tlie CAP;