(CAP), export subsidies and domestic price support. It also became self-sufficient in major agricultural products within the region by the first half of the eighties. Until the seventies, it used to be a net importer of grains, at an average of approximately 30 million tons annually, but by 1984 it had become a net exporter, and by the subsidies of CAP, it exported more than 20 million tons annually by the end of the eighties. The excess agricultural products stock in the EC reached an enormous level, such as 1.7 million tons of butter by 1986, 620,000 tons of skimmed powdered milk and 610,000 tons of beef in 1984. The financial burden for the price support and the export assistance contributing to the excess agricultural products reached its limit. The European Agricultural Guidance and Guarantee Fund (EAGGF) the amount of which represents the level of the price support and export assistance for the excess agricultural products of CAP become nominally 1.8 times higher in 1985 compared to 1979-81, and 1.2 times in real terms.1) The transformation in the EC agricultural policy started with production control and decreasing the support price in 1982, and they were gradually strengthened, then were expanded to environmental maintenance and reduction of inter-regional differences, whilst ensuring the objectives of improved productivity, stability of supply and farmers livelihoods, and sound pricing of CAP as stated in The prospects of the Common Agricultural Policy (Green Paper) in 1985. A comprehensive financial reform plan (Delor package) in 1987 was also heading in this direction, and was agreed by the European Board of Directors in February 1988. The 'stabilizer' which reduced the financial burden, and 'set aside' which was intended for production reduction and environmental preservation were introduced along with the mid term financial plan which started in the same year. Finally, a significant agricultural reform in 1992 were agreed including big reductions in the support prices, production control, protection for the medium and small scale farm managements (special assistance for the agricultural management by the youth), the preservation of the environment by the extensification policy (special action for the disadvantaged areas and environmental preservation areas), Then these reforms were subsequently merged with the agreements of the Uruguay Round
