Abstract Early theorists of European integration speculated that economic integration would lead to political integration and a European identity. A European identity has not displaced national identities in the EU, but, for a significant share of EU citizens, a European identity exists alongside a national identity. At the same time, political parties asserting more traditional nationalist identities and policies have directed their dissatisfaction against immigrants, foreigners and, sometimes, the EU. Those who participate in Europe are more likely to develop a European identity, while those whose economic and social horizons are essentially local are more likely to assert nationalist identities. It is argued in this article that the issue of European and national identity plays a heightened role in European politics, particularly in the economic crisis of 2007–11. The resolution of that crisis, which may result in increased European political co-operation, will have to take into account highly salient national identities that have so far resisted such co-operation.