A lower but more balanced protection for European agriculture

The main cause of the EC Budget shortage arises from the growth in the exportposition of agricultural products from the EC while, at the same time, prices arekept well above the world market level. Pressure on the Budget is the main forcecalling for CAP reform. This can be viewed either as a chance or a threat.- A chance, because it is well known that policies which generate invisibletransfers are unlikely to be reviewed and scrutinized by policy-makers andsocial forces. Policies demanding funds from the treasury do not have such acomfortable life, they have to be justifiable to public opinion.- A threat, because a budgetary approach to CAP problems is unlikely to bringabout prospects for a comprehensive, consistent set of principles or ruleswhich would have a sound economic basis and lead to long-term economic efficiency