Rural development in the European Union is part of the Common Agricultural Policy (CAP) and it is a vitally important policy area: over 56 % of the population in European Union (EU) Member States lives in rural areas, which cover 91 % of the territory. The EU has 500 million consumers and they all need a reliable supply of healthy and nutritious food. The CAP has long been a key EU policy area and it continuously evolves to address new challenges, such as climate change, sustainable management of natural resources and keeping the rural economy alive. Rural development policy for 2007 to 2013 is focused on three objectives.

These are:

•           improving the competitiveness of the agricultural and forestry sector;

•           improving the environment and the countryside; and

•           improving the quality of life in rural areas and encouraging diversification of the rural economy.

Cutting across these themes, the policy also seeks to involve local communities more strongly in the development of their own areas. Local Action Groups (LAGs) bring together local partners and create and implement development strategies for their communities using the LEADER methodology*. Every Member State creates national or regional Rural Development  Programmes (RDPs), which guide the implementation of rural development policy.