Both in the EU and Hungary rural development is of increasing importance in spite of the fact that it cannot provide a solution for the fundamental problems of agriculture. In practice an integrated and transparent method is required for de-linkage of subsidies provided for agricultural production from subsidies provided for rural development. Market-oriented agricultural production and the increase of international trade are remaining the most important priorities; therefore, the increasing role of multifunctionality in agriculture should not make a distorting effect on agricultural production and international trade. In order to ensure this the determination of the tight relationship between agricultural production and non-commodity output is indispensable. In addition to these the effects of positive and negative externalities have also to be taken into account. By providing agricultural subsidies environmental requirements have also to be considered. In Hungary a significant part of agricultural subsidies are granted on condition that certain environmental requirements are met. The same applies for food safety, which can be used by some countries for provisional or permanent market protection too. As a result of the EU enlargement the requirements of the community on food safety will also have to be observed by the candidate countries.
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