In this article, Valentin Zahrnt argues that the case for increasing expenditure on rural development schemes, as the Single Farm Payment is phased out, is far from clear. Indeed, some Axis 1 and 3 payments may even be worse in terms of economic and environmental impacts, whilst Axis 2 payments need to be targeted more effectively at the provision of environmental public goods.

In this article, Valentin Zahrnt discusses the role of markets in the context of the CAP reform. The author suggests that although markets are often condemned for their volatility in times of economic crisis, one should not ignore their basic tenet: that state intervention has hidden costs for long-term growth which cannot be fully appreciated individually.