CPO-3101 Lecture Notes - Lecture 39: Wonder Bread, European Union Legislative Procedure, Budget Of The European Union
16 May 2018
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A. Intervention price
a. Price at which EU intervenes in the market to buy
your produce. Same as target price. EU won’t let
prices dip below target or intervention to make sure
that farmers are making profit.
B. Entry Price ////
a. Minimum price that a foreign item can be sold at
i. Ex; American bread.
ii. Entry price is always higher than target price.
1. American bread sold for $2.50; pay extra
for foreign items.
C. Levy
a. Tax put on foreign goods that raises it to the entry
price.
i. Wonderbread selling loaves for $1.50, but we
need the EU to sell for $2.50, so they tax $1
extra to be more expensive than the EU
product itself.
D. Refund
a. Subsidy given to farmers to export their own goods
to make them competitive on the world market;
beyond euro market.
F. Prices set annually by Commission and “Special
Committee for Agriculture” with EP Consultation
before Lisbon and OLP after Lisbon ////
Special committee for agriculture—permeant rep.
of member states. Council institution. Expertise in
agricultural policy
After Lisbon was co-decision: EP was needed. ///
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Document Summary
Intervention price: price at which eu intervenes in the market to buy your produce. Committee for agriculture with ep consultation before lisbon and olp after lisbon //// of member states. **bureaucrats representing farmers: institution is designed to rep. farm interest, have higher prices for farmers. Over represents farm interests over consumer, budgetary interests, etc. creates problem. Farmers want more money, consumers want to pay less money. Which led to higher prices, and more expense to tax payer because it was structured by the institution. Eu stores and saves what they overproduce; use in disaster relief, etc. Turned out it would ruin the farming economies of the places they helped; so they stopped giving out food and began to store everything unused. Wait until the food spoils then they throw out. If you"re a farmer: this structure incentivizes you to overproduce vastly, pump gmo, etc. , because. Eu will buy anything you don"t sell to store.
