Trade Adjustment Costs in Developing Countries: - World Bank ...

368Johan F M Swinnen and Kristine Van HerckTable 24.4: Support to EU Agriculture (Total and distribution)1986–88 1989–91 1992–94 1995–97 1998–00 2001–03 2004–06TOTAL SUPPORT (PSE%)* 41 34 37 35 37 35 34Of which (in per cent)Market price support and paymentsbased on output 91 85 72 61 64 56 52Payments based on area planted/animal numbers 3 7 19 31 29 34 14Payments based on input use 5 7 7 7 7 9 10Payments based on historical entitlements,input constraints and farm income** 1 1 2 1 0 1 14* PSE%: Producer Subsidy Equivalent; measures total support to agriculture as a percentage of theproduction value** For the 1991–1993 average, this category also includes miscellaneous payments (approximately 2per cent of total)Source: OECDFigure 24.4: Distribution of the EU Agricultural Budget (1991–2006)There were several reforms prepared and implemented over the two terms whenFranz Fischler was Commissioner for Agriculture and Rural Development of theEU, which spanned almost a decade (1996–2004). Some of these reforms, such asthe Agenda 2000 package, were important. However, his name is most associatedwith the reform of 2003, which, at the time, was generally referred to as the ‘MidtermReview’, a term which, in hindsight, does not do justice to the extent andsubstance of the reform package that was decided in 2003. Those reforms wereassessed as the most radical reform of the CAP since its creation (Olper 2008;Swinnen 2008).