Democracy at the crossroads: A call to action for Europe’s funders

The health of democracy has been a subject of intense debate in recent years. Are we truly witnessing the erosion of democratic values, or is this just a momentary blip on the historical radar? For those who monitor global governance, the numbers don’t lie: democratic backsliding is not just a theoretical construct but a measurable phenomenon. For funders that recognise the importance of safeguarding democracy, the time to act is now. In Europe, a continent that perceives itself as historically synonymous with democratic ideals, the cracks in the democratic framework are becoming harder to ignore.

The subtlety of democratic decline

Unlike the coups or revolutions of the past, modern democratic backsliding often creeps in unnoticed, concealed beneath a veil of legality. Incumbent leaders manipulate institutions, bend laws, and exploit public sentiment while maintaining the façade of legitimacy. Recent reports from Freedom House, V-Dem, and the Economist Intelligence Unit reveal a troubling pattern of incremental declines in electoral integrity, civil liberties, and the rule of law. In Europe, these trends are not confined to newer democracies but are also evident in long-standing bastions of democratic governance like Austria, the Netherlands and the UK.

Far-right parties are gaining ground in countries like Italy and France, bringing anti-EU and nationalist rhetoric into the mainstream. At the same time, civil society organisations (CSOs) in countries such as Poland and Slovakia face mounting restrictions under the guise of transparency laws. These developments highlight the fragility of Europe’s democratic systems and demand urgent attention.

The root causes of democratic backsliding

Democratic backsliding in Europe is not a monolithic issue; it stems from a complex interplay of social, economic and political factors. To understand and address these challenges, we must look beyond visible symptoms and tackle the underlying causes. Philea’s Democracy Iceberg framework offers a useful lens that maps out root causes driving frustration, actors that abuse this fertile feeding ground to accelerate their own anti-democratic agendas, and the resulting symptoms of this discontent. While there is no one-to-one causal relation between these categories (indeed, many of them create an exasperating feedback loop), it is an important reminder for funders to look beneath the symptoms and develop a strategy that also tackles the roots.

Root causes

• Unmet needs: The past decades of financial, migration and global health and energy crises and subsequent austerity measures left critical needs like affordable healthcare and education underfunded while the cost of living soared. This neglect has widened socio-economic inequalities and deepens the sentiment that our current democracy does not treat everyone as equals.
• Unheard emotions: Feelings of anger and contempt toward those in power are growing, driven by stark disparities in wealth and opportunity. Feelings of isolation and a loss of community in a rapidly changing society exacerbate this discontent.
• Systemic failures: Underrepresentation, a rapid political cycle that invites short-term thinking, a lack of ways to influence policy other than voting, corruption… our current iteration of democracy is wrought withsystemic failures that undermine public trust.

Anti-democratic agents:

• Dark money: Thanks to independent watchdogs and investigative journalism, there is countless evidence of cash flows funding anti-democratic campaigns, organisations and policymakers. This further erodes transparency and distorts political equality, suppressing dissent through legal intimidation and manipulating public opinion through misleading propaganda.
• Disinformation: Social media platforms amplify sensationalist content, allowing disinformation to spread unchecked and offering anti-democratic actors the ideal tool to misdirect public sentiment.
• Populism: By presenting themselves as champions of the disenfranchised, populist leaders exploit socio-economic discontent, offering simplistic solutions, easy scapegoats and a divisive sense of belonging and identity to their supporters.

Symptoms:

• Dissatisfaction with democratic performance: A growing sentiment that democracy and its institutions are separate from its citizens and therefore need to perform and ‘deliver’. This view erodes our sense of community and our willingness to balance individual desires with the needs and rights of others.
• Polarisation: The feeling or view that our society is insurmountably divided, which undermines the ability to reach consensus on crucial long-term policies needed to tackle pressing challenges like climate change, economic inequality and social cohesion.
• Anti-immigration sentiment:  Or rather, the latest anti-‘insert scapegoat’ sentiment (-LGBT, -farmer, -urban elites), often a misdirected frustration that originated in valid and real concerns over livelihood, housing and safety.

The role of funders

Philanthropic organisations are uniquely positioned to combat democratic backsliding. They have the resources, networks, and flexibility to support innovative approaches and long-term solutions. Our in-depth briefer on how to fund democracy offers a multitude of suggestions, but I leave you with a few personal favourites:

• 1. Address socio-economic inequality: Support initiatives that provide essential services in underfunded sectors like healthcare and housing, focusing on community-based solutions
• 2. Uplift unheard voices: Support community-building initiatives that foster social cohesion and connection among citizens, such as local forums and dialogue projects, prioritising active listening to address feelings of disenfranchisement and isolation.
• 3. Fix systemic failures: Invest in innovative democratic governance projects that incorporate civilians in decision-making processes and enhance representative citizen engagement.
• 4. Curb the influence of dark money: Fund independent journalism and transparency initiatives that track political donations and lobbyist activities, enhancing public awareness and accountability to combat the erosion of trust in democratic processes.
• 5. Combat Disinformation: Support service journalism and general information media who are struggling to sustain themselves in times where contentious reporting is prioritised. (if you want to know how, check out Philea’s Journalism Funders Forum)
• 6. Weaken Populism: Fund initiatives that support political changemakers that are willing to build a more inclusive narrative and train them in effective communication strategies that focus on addressing concerns without resorting to inflammatory rhetoric.
• 7. Flip the narrative of democratic performance: Fund collaborative projects, movements and storytelling initiatives that can help shift public narratives toward a more inclusive and collaborative mindset and the importance of working towards the common good.
• 8. Reduce polarisation: Support community-led projects encouraging interaction between perceived opposing groups, to foster understanding and rebuild trust.
• 9: Counter anti-sentiments: Fund campaigns and organisations that are focused on issues that connect different groups through a shared frustration (e.g. cost of living, unaffordable housing, …), fostering a mutual understanding, empathy and a greater sense of belonging.

A call to action

While I understand that this might feel like an overwhelming challenge, there are many reasons to be optimistic. Surveys reveal that a foundational belief in democracy persists among European citizens, particularly youth. This sentiment provides a critical base upon which to rebuild trust in democratic institutions. Moreover, the rise of grassroots movements advocating for climate justice, social equity and human rights demonstrates the enduring power of collective action.

Philanthropy alone cannot reverse democratic backsliding, but it can catalyse change. The road ahead will require sustained effort, bold action and unwavering commitment to democratic ideals. The potential for impact is at an all-time high. There is a rich ecosystem of movements and organisations out there ready to ramp up their efforts in defending and innovating democracy and there are numerous tried and tested methods waiting to be leveraged.

If you feel galvanised to join the cause, or even if you want to dip a toe into the waters of democracy funding, there is a growing number of likeminded foundations connecting through newly emerging pooled funds and peer communities like Philea’s Democracy Network, where funders can collaborate, share knowledge and amplify their impact.

If you wish to dive deeper into the causes of democratic decline and how to fund democracy, check out “2025 Democracy Briefer for Funders: What’s Happening to European Democracy and What Funders Can Do About It” exploring democratic backsliding, its causes and potential solutions.