In the previous years the Mediterranean Member States of the EU came across the Reform of the CAP and especially last year faced the second wave of the Reform for three typical Mediterranean products, namely cotton, olive oil and tobacco. In this paper a partial equilibrium model is used to simulate the impacts of decoupling, as a key point of the decided CAP Reform. The second wave of the Reform appears to be of crucial importance for the southern EU countries and although the producer's income is reduced, there are positive welfare effects.


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