The Political Economy of the CAP Reform in Italy

This paper analyses the ex-ante socio-economic impact of the CAP reform on Italian agriculture and the whole economy using a micro-funded general equilibrium model which differentiates the impact at the household level. The political economy analysis of the consequences of the reform has clearly revealed the positions of farmers and agro-food industries, consumers, and farming unions concerning the issue of a total or partial implementation of decoupling. The policy analysis permits both an understanding of the possible social conflicts arising from the implementation of the reform and a unique ranking of the policy alternatives.