The Environmental Cross-Compliance in the EU Agricultural Policy - This paper analyses environmental cross-compliance policy within the agricultural policy of the European Union, considering both actual legislation and the recent reform proposed by the EU Commission. The focus is on farmers' response to this policy taking into account the uneven distribution of information between farmers and public administration, and the compliance monitoring problem. The main factors affecting farmers' behaviour are analysed to show the impact of their choices on compliance costs, program management costs and net benefits stemming from this policy. Finally, some policy design strategies are analysed to show
how these differ in terms of policy objectives, benefits, costs and policy management strategies.