1. The project “The Impact of CAP Reform on the Employment Levels in Rural Areas” Acronym: CARERA Contract no.: 022653 Starting Day: 1st of March 2006

2. List of Participants  P1 - Coordinator)  P1 - (Coordinator) Aristotle University of Thessaloniki (AUTH), Greece  P2 -  P2 - University of Crete (UOC), Greece  P3 -  P3 - University of Parma (UOP), Italy  P4 -  P4 - University of Wales at Aberystwyth (UWA), UK  P5 -  P5 - Wageningen University (WU), Netherlands  P6 -  P6 - Justus-Liebig University of Giessen (JLU), Germany  P7 -  P7 - Corvinus University of Budapest (CUB), Hungary  P8 -  P8 - Swedish University of Agricultural Sciences (SLU), Sweden

3. Main purpose The analysis of structural and employment effects of CAP reform and rural development measures

4. Project Objectives  To provide a comprehensive picture of the state of the art related to rural development measures  To provide a detailed database describing the economic transactions and interconnections between rural economic sectors  To quantify empirically the structural changes that will take place in the farming sector of selected rural areas  To analyse the extent to which the new policy regime will indeed improve farmer’s economic performance  analyse and classify the existing rural development measures according to their potential of fostering employment generation in the countryside  To provide an evaluation of the policy changes from the rural stakeholders point of view  To provide recommendations to policy makers on employment generating policy changes

5. Expected Outputs  An extensive and critical overview of the current implementation of CAP and the expected effects on employment generation  A detailed review of the instruments available for assessment of CAP reform, including a review of the appropriateness of the most commonly used farming models  A set of interlinked databases on the economic transactions (sales of products and purchases of inputs) of farming sector within the local economy  A detailed mathematical programming model which will be used to evaluate the changes in farming activities initiated from the new policy regime  An extensive survey and a detailed database on the perceptions of the stakeholders in the selected rural areas  A large scale general equilibrium model for the selected regions which will be “fed” by the results obtained from the mathematical programming model

6. Expected Outputs  A detailed economic model which will be used for the empirical evaluation of the economic performance and competitiveness of farmers in selected case studies  A detailed analysis on the effects of the CAP reform on the structural characteristics of farming activities namely crop mix, production cost, profit margins as well as on the employment levels in the countryside  An analysis of the economic conditions in the selected rural areas around the EU identifying the “key” economic sectors according to their potential to promote employment, income and output development in the regional economies  A report on the perceptions and intentions of the stakeholders in the selected rural areas concerning the recent CAP reform  A report on the employment effectiveness of the current rural development measures and suggestions for future amendments

7. Dissemination Plans  Publication of working papers through the CARERA website  Publications in scientific journals widely read by policy makers as well agricultural economists  Publication of summary reports on main findings on the website  Distribution of a leaflet containing the main findings of the project  Participation in international conferences  Creation of a CD-ROM containing the modeling tools  Organisation of a workshop bringing together external experts and EU decision makers as well as rural stakeholders  Organisation of a two-day intensive course directed to policy-makers both at the national and European level aiming at teaching the use of the modeling tools so that they can be applied to other areas. The two- day course will coincide with the workshop so that all partners are present and can explain their corresponding contribution to the modeling tools

8. Milestone NoMilestone DescriptionTarget Month M1.3Literature review completed4 M3.2Model calibration8 M4.2 Conceptual micro-economic model for analyzing the impact of the CAP reform and other factors on farm performance 8 M5.1 Construction of the hybrid regional input-output model 8 M5.2 Evaluation of the regional input-output models 12 M6.3 Conceptual model for the analysis of rural perceptions and intentions 18 Major Milestones

9. Work Plan Basic Parts: 8 Work Packages 29 Deliverables 29 Deliverables

10. WP No Work Package Title Lead Contractor No Start- month End- month Deliverable No WP1 State of the Art in Theory and Practice of Rural Development Measures P4/Midmore/UK120D1, D2, D14 WP2 Databases P7/Forgacs/HU116D3, D4, D5 WP3 Assessing the Structural Impact of CAP Reform in the Farming Sector P3/Arfini/IT112D6, D9 WP4 Assessment of the CAP Reform on Farmer’s Economic Performance P5/Oude Lansink/NL120D8, D12 WP5 Assessment of the Overall Effects on Rural Employment and Income P1/Mattas/GR120D7, D10, D11 WP6 CAP Reform, Rural Development Measures and the Rural Stakeholder’s Perceptions and Intentions P2/Tzouvelekas/GR120D15, D13 WP7 Demonstration and Dissemination of the Results P1/Mattas/GR1624D16-D25 WP8 Project Management and Assessment P1/Mattas/GR124D26-D29 WP- Lead Contractor-Start/End Month-Deliverables

11. WPs Start & End Month :D1, D2, D14 :D3, D4, D5 :D6, D9 :D8, D12 :D7, D10, D11 :D15, D13 :D16-D25 :D26-D29

12. Countries of Case Study per WP UKGRITGERHUSWNL WP No WP1 WP2 WP3 WP4 WP5 WP6

13. WPs Interdependence ***The arrow’s end signifies the input that is provided to the pointed work package

14. Deliverable No WP No Lead Participa nt Delivery Date Deliverable No WP No Lead Participa nt Delivery Date D26WP8P13D13WP6P223 D1WP1P46D14WP1P423 D2WP1P46D16WP7P123 D3WP2P76D18WP7P123 D6WP3P36D19WP7P323 D7WP5P16D20WP7P423 D8WP4P56D21WP7P623 D28WP8P1biannuallyD22WP7P823 D4WP2P712D23WP7P723 D9WP3P312D15WP6P223 D27WP8P112D17WP7P124 D5WP2P716D24WP7P124 D10WP5P123D25WP7P124 D11WP5P123D29WP8P124 D12WP4P523 Deliverables & Delivery Date