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Abstract

Last year the Mediterranean Member-States of the EU came across the reform of the CAP for three products tobacco, olive oil and cotton. In this paper a partial equilibrium model is used to simulate the impacts of decoupling, as a key point of the decided CAP Reform. Affected by this reform are almost only the south EU-countries and not the other EU-countries. Nevertheless, the introduction of the decoupled direct payments leads to welfare gains to the EU-15.

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