CAP expenditure and CAP reform path (constant 2007 prices)

The CAP has undergone various reforms since its inception in 1962: the MacSharry reform (1992), the Agenda 2000 (1999), the Fischler reform (2003) and the ‘Health Check’ (2008).
The rationale behind these reforms resulted in a shift from product support (i.e. through fixed prices) to producer support (i.e. through direct payments to support farmers’ income). Moreover, the link between direct payments and production volume has progressively been reduced, while spending on rural development has been reinforced.