ECONOMIC RESILIENCE OF THE EUROPEAN UNION: THE ROLE OF AGRICULTURAL POLICY
Abstract
The article provides a comprehensive analysis of the Common Agricultural Policy of the European Union as a strategic instrument for strengthening economic resilience in the face of global challenges. Economic resilience is defined as the capacity of an economic system to absorb shocks, adapt to disruptions, and maintain functionality under conditions of uncertainty. Scholars emphasize that resilience involves two critical dimensions: structural transformations aimed at reducing vulnerability and the adoption of forward-looking economic policies that anticipate systemic risks. The study highlights CAP’s multifaceted role in ensuring food security and agricultural sustainability through mechanisms such as direct payments, rural development programs, environmental initiatives, and technological innovation. By mitigating regional disparities and fostering competitiveness, CAP contributes to the EU’s ability to withstand crises, including pandemics, climate-related disasters, and geopolitical tensions. Furthermore, the article explores the economic implications of CAP, addressing both positive and negative externalities. Issues of resource allocation efficiency and Pareto optimality are examined in the context of subsidy dependence among member states. The post-2020 CAP reform, aligned with the European Green Deal and the Farm to Fork Strategy, marks a paradigm shift from traditional protectionism toward an integrated framework that combines economic and social objectives. This evolution underscores CAP’s role in advancing sustainable agriculture and promoting biodiversity. The discussion also considers future challenges, such as balancing domestic priorities with global responsibilities, enhancing policy coherence, and ensuring flexibility in response to emerging threats. The authors conclude that CAP is not merely an agricultural policy but a cornerstone of the EU’s long-term economic security strategy. Its success will depend on harmonizing efficiency with sustainability and resilience with adaptability, thereby shaping a robust and inclusive European food system.
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