Summary
The latest reform of the Common Agricultural Policy has just been accepted, identifying important challenges for EU agriculture but proposing only limited changes to existing policy. Now it is time for the implementation of new measures. However, from a theoretical point of view, it seems that the CAP can hardly meet the challenges it faces due to the inconsistencies between the predefined challenges and the measures proposed to meet them. Economic, environmental and social challenges, identified by the Commission, do not seem to align with the measures proposed to meet them. Direct payments along with the EU's agricultural competitiveness and food quality policies do not help in reaching the food security goal, while greening measures can hardly contribute to the environmental challenges European agriculture is faced with. Moreover, current measures under the EU's rural development policy are ineffective in meeting the well‐known European social challenges. In addition, the CAP does not fully fit the needs of New Member States with different endowments and traditions. A new three pillar CAP, with phased‐out direct payments, focusing on climate smart agriculture and genuine rural development policy, along the lines we suggest, is key for the future.