The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States. Factor Markets Working Document No. 66, August 2013

This paper examines the determinants of exit from agriculture under the implementation of CAP payments in four selected EU countries (France, Hungary, Italy and Poland) in the period 2005-08. The study employs micro-data from the European Union Labour Force Survey and regional data from the Farm Accountancy Data Network. We differentiate among the different measures of farm payments, looking at the individual impact of Pillar 1 instruments, i.e. coupled and decoupled payments, and at those in Pillar 2, targeted at rural development. The main results suggest that total subsidies at the regional level are negatively associated with the out-farm migration of agricultural workers in the two New member states, Hungary and Poland, so that the CAP would seem to hinder the exit of labour from agriculture. Conversely, the non-significant results for the ‘old’ member states may be interpreted as the result of opposing effects of coupled payments and rural development support. The diverse impact of CAP on the likelihood of leaving agriculture in the four countries reflects the heterogeneity across European member states, due to different market and production structures, which does not allow a common and simple generalisation of the effect of the CAP on labour allocation.

EU democratization policies in the Neighbourhood countries and Russia’s reaction as a destabilizing factor. A comparative case study of Georgia and Moldova. Bruges Political Research Papers 45/2015.

The EU democratization policies have not achieved the expected results in Eastern Partnership (EaP) countries. On the contrary, they have led to the outbreak of the most important crisis in Europe after the end of the cold war. A new vision of cooperation in the field of democracy is necessary in the East, as long as even Georgia and Moldova, countries considered to be the most advanced among the EaP states, have not registered essential progress in the democratization of their societies. Assuming that democratization, as part of EU’s neighbourhood policies, can be considered a threat to Russia and hence a ‘destabilizing factor’ for the EU partners, this thesis tried to understand what changes can be made to EU policies and to what extent cooperation between EU and Russia is possible in the process developing democratization policies in Georgia and Moldova. While arguing for the revitalization of the instruments used for the implementation of the democratization policies, this thesis finds that cooperation between the EU and Russia in the field of democracy is excluded as long as the two geo-political actors have different values and different views on the notion of democracy. The most likely cooperation that might occur between EU and Russia is the establishment of a Common Economic Space ‘from Lisbon to Vladivostok’. Even though such a scenario would have the potential to reduce confrontation between the two actors in the common neighbourhood, this cooperation would, however, have a negative impact on the on-going democratic reforms in Georgia and Moldova.