Karlsruhe's Lochner moment? A rational choice perspective on the German federal constitutional court's relationship to the CJEU after the PSPP decision

Abstract

On May 5, 2020, the German Federal Constitutional Court issued the PSPP decision, sending shock waves through the European Union. This contribution analyzes the consequences of the PSPP decision for the future relationship between the German FCC and the CJEU and for European integration as a whole. The article consists of four parts. First, I will provide some context and model the interaction between domestic and international courts from a rational choice perspective. Second, I will recapitulate some core aspects of the relationship between the German Federal Constitutional Court and the CJEU in particular. I argue that the relationship between both courts had evolved into a strategic equilibrium in which it was costly not to respect the decision of the other party. The third section then looks for reasons why Karlsruhe nevertheless deviated from this equilibrium despite the significant costs involved. The fourth section, finally, considers the way ahead and analyzes what possible consequences for the future relationship between the Federal Constitutional Court and the CJEU.