Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Brexit and EU Common Agricultural Policy: The possible consequences for Lithuania
Issue: Vol. 12, No 2, 2019
Published date: 06-2019 (print) / 06-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Artiom Volkov
Lithuanian Institute of Agrarian Economics

Tomas Baležentis
Lithuanian Institute of Agrarian Economics

Mangirdas Morkūnas
MykolasRomeris University

Dalia Streimikiene
Lithuanian Institute of Agrarian Economics
Keywords: Brexit, common agricultural policy, scenario modelling, Lithuania
DOI: 10.14254/2071-789X.2019/12-2/20
Index PUBMS: 259c67f7-ad4f-11e9-bbfd-fa163e0fa1a0
Language: English
Pages: 328-344 (17)
JEL classification: Q14, Q18
Website: https://www.economics-sociology.eu/?680,en_brexit-and-eu-common-agricultural-policy-the-possible-consequences-for-lithuania
Licenses:
Abstract

This paper examines the possible Brexit scenarios and their impacts on the Common Agricultural Policy (CAP) of the European Union (EU) with particular focus on Lithuania. The paper outlines the scientific discourse on the imminent modifications of the CAP after the Brexit along with changes in the EU budget. The paper was prepared during the beginning of Brexit negotiations, with withdrawal terms not being publicly disclosed. Thus, the most likely assumptions have been accepted in order to model the scenarios. The possible effects of Brexit on the agriculture of the small EU Member States are discussed taking the case of Lithuania as an example. The empirical analysis showed that, in the case of three different Brexit-induced CAP modifications, Lithuanian agricultural sector may lose 1% to 20% of financial support under the CAP direct payment mechanism. The corresponding loss under these scenarios is quantified for agricultural sectors of all the EU Member States.

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