The trajectory of European integration has long been marked by a democratic deficit. The global financial crisis and, in particular, the so-called Euro crisis has led to further losses of democratic accountability, with major decisions being imposed on parliaments and citizens of European Union (EU) countries without adequate deliberation. This essay examines such developments, arguing that neoliberal reforms and financial powers have invariably impoverished democracy in Europe, while reactions within civil society grow stronger by the day. Nevertheless, civil society forces are still divided with respect to the question of how to strengthen democratic participation and accountability both at the national and supranational level, as divisions between ’federalist’ and ‘sovereignist’ approaches are all but present within the European civic arena.