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This article explores whether and under what conditions functional sectoral cooperation between the EU and the countries of the European Neighbourhood Policy promotes democratic governance. In an analysis of four countries (Jordan, Moldova, Morocco, and Ukraine) and three fields of cooperation (competition, environment and migration policy), we show that country properties such as the degree of political liberalization, membership aspirations, and geographic region do not explain differences in democratic governance. Rather, sectoral conditions such as the codification of democratic governance rules, the institutionalization of functional cooperation, interdependence, and adoption costs matter most for the success of democratic governance promotion. We further reveal a notable discrepancy between adoption and application of democratic governance in the selected ENP countries that has not been remedied in the first five years of the ENP.