This study examines how populist politics and anti-immigrant sentiment interact in the process of European participation. Addresses the argument that actors incite “welfare chauvinism” and immigration issues in order to withdraw specific groups of the electorate, drawing on case studies from early twentieth century Argentina and post-World War II Australia. Taking a comparative perspective on electoral system in Europe, it analyzes the impact of immigration on strategies to maximize votes or gain positions for parties. It uses a qualitative ‘process tracing’ methodology to explore how European identity is being redefined in the context of anti-immigrant sentiment, with particular attention to the role of EU institutions and public opinion, and highlights the complex ways in which policy-making, social attitudes and global forces. The conclusion asks whether governments are “driven” by international social interests or particular pressure groups, and considers what such a competitive and adversarial climate means for Western countries. It asks what community interest and identity mean in an era of economic scarcity and increased competition, and whether it is possible to rethink the assumption that national economic policies serve the common good.