The EU’s attempts to manage air transport regulation illustrate the extent to which supranational actors can send credible signals to financial markets

How can European policymakers send credible signals to financial markets? Christian Rauh traces market responses to the announcements and events during the Commission’s nine-year conflict for competences in international air transport regulation. He finds that judicial strategies and European Court of Justice proceedings sent the most credible signals for regulatory change to financial markets, adding evidence to ‘institutionalist’ views of European integration.