The European Union's Common Agricultural Policy essentially consists of a combination of subsidies to agricultural producers, supported by import barriers for agricultural products and incentives for exports. It accounts for roughly 40 percent of EU budget expenditures. It is a source of contention among EU member states; some want greater subsidies and others want the policy reformed or annulled altogether. Agriculture is a relatively small sector of the EU economy, accounting for less than 2 percent of the bloc's gross domestic product and roughly 5 percent of employment. However, the European Union is the second-largest agricultural exporter in the world (slightly behind the United States) and the world's largest importer of agricultural goods. Agriculture is more important to the economies in Eastern and Southern Europe than to those in Central and Northern Europe. For instance, in Romania, agriculture represents more than 5 percent of gross domestic product and almost 30 percent of employment, and in Greece agriculture represents around 2.5 percent of the gross domestic product and 13 percent of employment. France is the European Union's largest agricultural producer, but the sector is not as important in terms of gross domestic product and employment. Naturally, countries that depend more on agriculture defend the Common Agricultural Policy, and those where agriculture is less relevant criticize it.
According to a March Eurobarometer poll, most Europeans consider it important to provide financial assistance to rural areas. More than 75 percent of respondents believe the Common Agricultural Policy benefits all EU citizens, although only a minority know about it in detail. However, the policy also has received strong criticism, including accusations of ineffectiveness and misspending, allegations that it creates artificially high food prices and reports that it hurts smaller farms and even damages the environment. The most relevant of these critiques, and the one that will shape the Common Agricultural Policy in the future, is the accusation that it disproportionately benefits some member states and harms others. In the long run, the Common Agricultural Policy is likely to make up a smaller percentage of the bloc's budget than it does now. However, food security, specifically domestic production, will continue to concern European leaders, and agricultural producers will remain politically significant in most EU countries. Reform of the policy in the coming years will focus on modernization and simplification, but complete abolishment of the Common Agricultural Policy is unlikely.
