This post is written by Ulrich Koester and Jens-Peter Loy
According to new legislation, the European Commission (EC) is in charge of evaluating Pillar 1 measures of the Common Agricultural Policy (CAP), while Pillar 2 measures have to be evaluated by the Member States (MS). Pillar 1 measures are of utmost importance for EU expenditure, amounting to a share of about 40% of the total expenditure of the EU budget. The request for evaluation is a significant step forward. One may wonder whether this new task indicates that the measures of the CAP have not been evaluated regularly so far. In the following, we focus on one specific measure, direct payments, for two reasons.
First, these payments make up more than 70% of the total CAP expenditure and, second, the EC has already published respective evaluation results.
The structure of the post is as follows: In the first part, we present the evaluation methodology widely used by professional economists.… Read the rest
