The New EU Agricultural Crisis Reserve: Unintended Consequences

The European Union’s new Agricultural Crisis Reserve, introduced in 2023, aims at enhancing support for the agricultural sector during market crises. Unlike its predecessor, this reserve is funded directly from the EU budget, eliminating the need to cut direct payments to farmers. However, this change has unintentionally created an incentive for member states to trigger the reserve more frequently, depleting its resources rapidly. This article explores how this shift has led to a “Tragedy of the Commons” scenario, where member states seek individual advantages at the expense of the collective interest.