SYSTEM OF COMPETITION PAYMENTS IN AGRICULTURE AS A PROBLEM OF POLAND’S INTEGRATION WITH EUROPEAN UNION

In March 1999 Poland started officially negotiations about the accession to European Union. Fundamental condition of integration is to accept the so-called acquis communautaire by Poland. From one side the admission in UE means the acceptation of all duties, from the other - getting opportunity of taking economic results which can influence economic development in a longer time. The Polish negotiation position was planned to be introduced in November 1999. Poland expects free trade in food and agriculture and a system of structural funds and compensation payments as well as guaranteed adequate production quotas. The huge amount of regulations and the volume o f ELTs budget spent on agriculture make that the sector of economy becomes the most problematical part of negotiations. The UE meeting in Berlin was expected to be a point of introduction of the elements of new radical reform into Common Agricultural Policy (CAP). The reform could be connected with expense reduction on the food sector of economy and with changes in equalisation payments. In March 1999 the Agenda 2000, i.e. the financial plan for 2000 - 2006, was accepted. According to these regulations the cost o f CAP is going to rise from 42,7 milliards of euro to 43,7 milliards in 2003 and compensation payments from 20 to 30 milliards of euro. At the same time the Agenda 2000 does not anticipate Polish farmers to be covered by a system of compensation payments. This article is focused on system of compensation payments, on the method of its establishing and its results. It also tries to show why instrument is one of the basic matters for Polish negotiating group