<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Application of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade), the community’s priority in meeting the needs for agricultural products (protection against imports) and the existence of financial solidarity (joint financing). Joining the European Union for new member states implies the termination of the implementation of the existing national agricultural policy and the the beginning of the implementation of the CAP. Although membership in the European Union implies many advantages, the period after joining this community can be quite economically unstable for some countries. One of the most significant problems is an increase in agricultural product prices and a rise in the general price level (inflation). The above can be confirmed by a simple empirical analysis of the economic indicators of the countries that joined the EU together in the period from 2004 until 2007.</p></abstract>

Application of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade), the community’s priority in meeting the needs for agricultural products (protection against imports) and the existence of financial solidarity (joint financing). Joining the European Union for new member states implies the termination of the implementation of the existing national agricultural policy and the the beginning of the implementation of the CAP. Although membership in the European Union implies many advantages, the period after joining this community can be quite economically unstable for some countries. One of the most significant problems is an increase in agricultural product prices and a rise in the general price level (inflation). The above can be confirmed by a simple empirical analysis of the economic indicators of the countries that joined the EU together in the period from 2004 until 2007.

The Impact of the Common Agricultural Policy of the European Union on the General Price Level of Countries that Joined in the Period from 2004 to 2007

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Application of The Common Agricultural Policy (CAP) of the European Union implies the existence of a single market (without customs duties on mutual trade),...

The Impact of the Common Agricultural Policy of the European Union on the General Price Level of Countries that Joined in the Period from 2004 to 2007

Published Online: May 04, 2020

Page range: 233 - 255

Received: Oct 21, 2018

Accepted: May 30, 2019

DOI: https://doi.org/10.2478/ethemes-2019-0014

Keywords
agrocultural policy, CAP, EU, European Union, inflation, general price level

© 2019 Ivana Stojanović, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Impact of the Common Agricultural Policy of the European Union on the General Price Level of Countries that Joined in the Period from 2004 to 2007

Published Online: May 04, 2020

Page range: 233 - 255

Received: Oct 21, 2018

Accepted: May 30, 2019

DOI: https://doi.org/10.2478/ethemes-2019-0014

Keywordsagrocultural policy, CAP, EU, European Union, inflation, general price level

© 2019 Ivana Stojanović, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
agrocultural policy, CAP, EU, European Union, inflation, general price level