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Since the consequences of intensive human intrusion in the environment are well-known, the role of public goods in agriculture has recently gained a significant importance and is often mentioned in the debates over the current CAP reform. This book analyses why it is impossible to deliver public goods associated with agriculture under market conditions and why the European agriculture needs the Common Agriculture Policy to make the provision of public goods more effective. The book presents the current CAP measures that aim to enhance the efficiency of the provision of public goods and their discrepancies that are harshly criticized by experts and agricultural economists. There is a need for changes and the process of reforming the CAP is now underway. The question is how to reform the new CAP to be more green, sustainable and competitive at the same time. The book presents the new proposals of the European Commission how to reform direct payments and to green the first pillar tobe more suitable to bolster the provision of public goods. It also reviews the criticisms of experts and stakeholders who try to highlight the discrepancies of the proposals made by the Commission.