The Role of Courts in Economic Governance in the European Union

Abstract

This paper asks the question whether the courts have a role in shaping economic policy decisions at the EU level. It analyses which types of “economic” cases reached the courts during the financial crisis in the EU, and to what extent and with which arguments Member States' courts and the CJEU agreed to participate in shaping economic policy decisions. The paper discusses the effects and desirability of the courts’ participation in economic governance, and concludes that, whether or not one approves this, the Courts are today inevitable part of economic governance. Shift from international instruments as a means of addressing the euro crisis to the EU-based instruments will not eliminate judicialisation of economic governance. If, for instance, fiscal policy becomes more communitarianised, this will not change judicial involvement, it would just change the level of the courts involved: from national courts to the CJEU. This can, arguably, also change the outcome of judicial decisions, but not the involvement of courts in economic decisions.

Keywords: Courts, European Court of Justice, Economic Governance, Financial Crisis

JEL Classification: K4