The Common Agricultural Policy and the Next EU Budget, Reflection Paper No. 2

Common Agricultural Policy (CAP) spending primarily takes the form of direct payments to farmers in what is referred to as ‘Pillar I’ of the CAP. In the 2015 budget, direct payments accounted for roughly €40.9 billion, or 71% of total CAP spending (€57.6 billion) and 29% of total European Union (EU) spending (€141.7 billion). Most of the remaining CAP spending (€13.8 billion or 25% of the CAP budget in 2015) falls under ‘Pillar II’ which is used to finance rural development and agri-environmental measures. While some adjustment will take place in the course of the current Multiannual Financial Framework (MFF) through 2020, these magnitudes and shares will remain largely unchanged.