Modelling the impact of EAFRD policies on rural development and structural change

Policies for rural areas have become an important but complex policy field in the European Union`s Common Agricultural Policy. In this paper we present a programming approach to analyse the EAFRD budget allocation in Saxony-Anhalt. The approach has been interactively developed with representatives from our partner Ministry. The model is used to analyse and discuss optimisation potentials and the effects of reduced budget availabilities facing Saxony- Anhalt. The results obtained reveal a rather high optimisation potential and reflect the importance of the co-financing modalities within the EAFRD and the GAK context. Budget cuts would severely affect the allocation of funds and the financing mode.