The 1992 MacSharry Reform

Arlindo Cunha and Alan Swinbank

in An Inside View of the CAP Reform Process

Published in print February 2011 | ISBN: 9780199591572
Published online May 2011 | e-ISBN: 9780191725579 | DOI:
The 1992 MacSharry Reform

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The 1992 CAP reform, proposed by the then Farm Commissioner Ray Mac Sharry, and adopted under a Portuguese Presidency, fundamentally changed the shape of the CAP, by partially switching from price support to a direct income support model. It was undertaken despite the opposition of farm interest groups and the initial hostility of many member states. Whilst the reform stabilized future budget expenditure, it did not reduce the CAP's cost, but it did enable the EU to accept the Agreement on Agriculture that was emerging in the Uruguay Round of GATT negotiations. This chapter outlines the economic and social context, and assesses the factors that motivated the reform proposals and influenced and determined its final outcome.

Keywords: price and income support; budget; MacSharry; Portuguese Presidency; Uruguay Round

Chapter.  15574 words. 

Subjects: European Union

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