The Euro-crisis, the subsequent bailout efforts and ‘institution-building’ have triggered intense contestation. How these measures have changed the dynamics of integration, but also their democratic implications remain uncertain. This article examines the responses taken by the EU and its member state governments, the financial mechanisms, EFSM, EFSF, and ESM in particular. Their institutional
... [Show full abstract] character and how they conform to or diverge from previous institutional development in the EU are assessed. Building upon that, we address their connection with the democratic dilemma of the EU. European integration has long relied on balancing between intergovernmentalism and the supranational ‘Community method’. A growing preponderance of intergovernmentalism in the delicate policy area of fiscal and economic governance could be understood as a protection to member state autonomy. However, such developments can exacerbate multiple asymmetries and have problematic implications for democratic legitimacy, not just at EU level, but also for the member states themselves.