Mutual Funds and the Income Stabilization Tool in the EU: retrospect and prospects

Cordier, Jean and Santeramo, Fabio Gaetano (2018): Mutual Funds and the Income Stabilization Tool in the EU: retrospect and prospects. Forthcoming in: EuroChoices

Abstract

Higher frequency and intensity of extreme weather events strengthen the need for integrated risk management. EU Regulation No. 1305/2013 allows subsidies for insurance instruments, for mutual funds compensating production losses, and for mutual funds to compensate for income losses. The EU toolkit in this respect has been largely underutilized, and an integrated EU policy for risk management has not been developed. The existing EU technical documents explaining the content and details do not provide clear explanations and interpretation of the current regulations and so more efficient guidelines for Mutual Funds and sectoral Income Stabilization Tools should be developed. This could be facilitated by establishing a platform for public consultation, knowledge sharing and learning which would include stakeholders, farmer unions’ representatives and academics, to help the process of building shared experiences or even common benchmarks. The platform would be part of a dissemination and innovation effort to capitalize knowledge in a learning curve and would act as a catalyst for the implementation of MFs and ISTs.

• Item Type: MPRA Paper
• Language: English
• Keywords: Risk Management, CAP, Risk sharing
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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