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The paper analyzes the financial allocations from the Regional, Rural Development

The Common Agricultural Policy (CAP) is a core policy of the European Union (EU), representing 40 per cent of the EU budget and a cornerstone of the integration process. Due to the path dependency that defined its evolution, it had always been a rather homogeneous and centralized policy. For the first time, the 2014-20 reform endowed Member States with the possibility to tailor the direct payments of the CAP along different fields of flexibility and thereby better address their national needs. This article examines these national choices in terms of the discontinuity they impose on the centralized policy model, showing that they reduced the policy inertia associated to the historical processes in place at the EU level, along a new national path dependency re-shaping the CAP implementation. The flexibility introduced by the 2014-20 reform was particularly embraced by Member States that had been penalized by the 'one-size-fits-all' historical archetype.

The objective of this article is twofold: first, investigating the relationship between technical efficiency and decoupled direct payments of a sample of Italian farms prior to the application of the 2014–2020 Common Agricultural Policy reform; second, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a stochastic frontier analysis is adopted. Results indicate that direct payments produce significant effects on technical efficiency in specialized farms, which received higher levels of support. However, effects are contrasting. Moreover, results show that redistribution of policy subsidies may negatively impact on technical efficiency to an extent depending upon the criterion of redistribution applied. Finally, some policy suggestions are given.

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