Effects of the EU's Common Agricultural Policy on the Development of Regional GDP in Austria

More than half of the EU's population lives in rural areas. Regional GDP rates differ substantially between rural and urban areas as well between rural areas themselves. One of the main objectives of the EU regional funds is achieving cohesion between regions. In the current programme period, 35.6 percent of the EU budget is spent on "cohesion for growth and employment". The Common Agricultural Policy (CAP), which has its own objectives, calls for most of the 42.5 percent share of the EU budget to be spent on "preservation and management of natural resources".