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The political change from socialism to democracy in countries of Central and Eastern Europe at the end of the 20th century induced broad changes in agriculture mostly due to land ownership changes and strong reduction of subsidies to agriculture. This resulted in agricultural decline, including grassland abandonment, which influenced grassland biodiversity and conservation. Between 1999 and 2015 we studied the grasslands in the area depopulated in the early 1980's in the Poloniny National Park (NE Slovakia, Carpathian Mts.). The aim of the study was to examine influence of environmental factors and grassland management driven by the Common Agricultural Policy (CAP) to plant community structure and taxonomical diversity. We identified altitude and soil properties as the main environmental factors: altitude determines climate gradient and probably also management intensity gradient and soil properties express soil fertility via A-horizon depth. We identified remarkable increase of proportion of managed grasslands from only 8% in 1999 to 40% in 2012–2015; other 7% of sampled grasslands were recently restored and prepared for future management. The average species richness in grasslands managed in 2012–2015 increased from 47.5 species per record in 1999 to 54.2 species in 2012–2015, the increase was found statistically significant. In 2012–2015, we observed statistically significant difference in the average species richness between managed (54.2) and abandoned grasslands (46.3). The agricultural subsidies of the CAP drive the grassland management in the study area. Therefore, we conclude that CAP enabled grassland biodiversity maintenance in significant part of the Poloniny National Park following start of its application in 2004 and above provided figures can be considered as indicators of the CAP effectiveness in our study area. However, the conservation of mountain meadows remains a challenge because of their poor accessibility. [ABSTRACT FROM AUTHOR]