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On the basis of Hannah Arendt’s and Carl Schmitt’s writings on the constituent power, this article sets out to develop an interpretative framework which would aid the understanding of the legitimation crisis of European integration initiated by the EU constitutional failure of 2004. The question raised in this essay is whether the successful establishment of democratic constitutional legitimacy is conditional upon the existence of a federal state. From the perspective of the constituent power, two opposing answers are given based on two rivalling notions of the ultimate meaning of constitutional politics: freedom and security. The article concludes that even though the EU as a case remains undecided, it seems likely that democracy and constitutional politics have parted ways in the EU both in the Arendtian and in the Schmittian sense. If that is the case, the constitutional crisis is a serious problem for the future of democracy in the EU.