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Abstract

This paper focuses on the basic element of the 2003 CAP reform process: on the single farm payment and its national implementation models. We examine possible economic impacts (production distorting effects, redistribution, restructuring, resource allocation and effects on land market) of the basic SFP models. In sum, we can say that the 2003 CAP reform and the new support provide an opportunity to overcome some of the difficulties the CAP faces with. However, the wide range of national diversities threatens the principle of the single market, and transparency and operation of the common market organizations. As there is a wide range of possible constructions member states can decide for, the common nature of the CAP gets more and more questionable.

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