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There is growing awareness within the political system that the Common Agricultural Policy (CAP) of the EU is not the most efficient means of addressing an increasing number of policy objectives, ranging from rural development to environmental considerations. Several commentators and economists have suggested that a renationalisation of the CAP would be an applicable way to proceed in an attempt to pursue a policy sensitive enough to national and regional or local needs and priorities. Renationalisation of the CAP is not a new feature, however. Over the last couple of decades, certain elements central to the CAP have involved a considerable degree of nationalisation. Hints at the renationalisation of at least some aspects of the CAP have also emerged from the recent reform debate. Renationalisation implies a shift of competence back from EU institutions to national ones. This may be in terms of decision-making, of financing or of implementation, or all of these aspects. Is such additional flexibility desirable? Does it offer a way to relieve the hard-pressed EU budget? How is the principle of subsidiarity to be applied here? At what level is competence exercised in the most efficient way? What tasks could better be left to the Member States? And, vice versa, what missions would this produce for the union? How to ensure that a redefined division of competence does not distort competition, threatening the common agricultural market and thereby endangering the whole process of European integration? This paper discusses some of these issues from a political-economy perspective with no pretence of completeness.

Gradual renationalisation of the Common Agricultural Policy – a way forward?