AbstractThere has been a significant rise in anti‐establishment votes in the European Union (EU). The decline in socio‐economic outcomes and migration played an important role in understanding the rising discontent. However, none of the existing studies analysed the effect of socio‐economic factors in different institutional settings. Our findings confirm that institutional quality is of paramount importance in explaining the recent rise in populism in the EU, as institutionally developed EU regions are less opposed to EU integration. Remarkably, the effects of socio‐economic factors on populist votes vary in different institutional settings. The findings highlight that institutional improvements are vital for the EU perception of less developed and socio‐economically isolated EU regions.