EN
The European common agricultural policy is heavily criticized by experts. CAP is accused to be inefficient due to little improvement in agriculture and high budget spending. This paper aims to answer a question whether all instruments are really so badly designed? The first part of the analysis of various policy mechanisms are provided to show their effects on market. The development of EU agricultural policies and present movement are included at the end of the first part of the analysis. A comparison of EU and US approach to agricultural sector is discussed in the second part of the analysis.