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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.