Obstructing integration: Domestic politics and the European Court of Justice

Abstract

Do legal rulings from the Court of Justice promote European economic integration? This article examines lawsuits where governments are found guilty of breaching their commitment to the common market. In these cases, governments are required to adopt reforms which, correctly applied, should promote intra-European trade. Using a novel dataset of trade-liberalizing rulings, I show that although they do prompt some increases in trade, the effect is contingent on domestic politics. When the defendant government has many political constraints, both institutional and partisan, it is less likely to expand its trade with the European Union. Domestic politics obstructs the policy reforms—and active enforcement—necessary to deepen economic integration. The findings highlight obstacles to the completion of the single market and limitations of the court.