A new study of democracy in the European Union labels Greece and Hungary the most worrisome "backsliders" on democratic values, but also urges special attention to Bulgaria, Romania, Spain and Italy.

The report, conducted by the Demos think tank for the European Parliament's Socialists and Democrats group, says the current financial crisis has heightened antidemocratic trends, but that this isn't the sole factor.

The EU should embrace its role as a watchdog of democracy, the paper says, and not see itself as solely an economic bloc. The report cites five major areas of democratic "backsliding":

A loss of faith in traditional politics, highlighted by the rise of far-right parties like Greece's Golden Dawn and Hungary's Jobbik .

and Hungary's . A flourishing of corruption, particularly in Greece, which the report calls "the EU's most corrupt member state."

Problems with courts and the judiciary, especially in Central and Eastern European countries formerly part of the Soviet bloc* (Corrected--See below).

A lack of media freedom, with Hungary in particular declining in this area.

The treatment of minorities. "Across Europe, we find that Roma were considered the least desirable neighbour, followed by homosexuals and then Muslims," the report says. "Overall, Netherlands, Austria, Czech Republic and Slovenia experienced the most significant hardening of attitudes."

The Demos report cites Bulgaria and Romania as the EU's poorest performers regarding democracy, saying that's not surprising "given the histories of these countries."

But Hungary and Greece are the countries with the sharpest declines in democratic practices. "Greece ... continues to suffer severe strain to its democracy: high unemployment, corruption, social unrest, the rise of extremism and a deep public malaise," the study says.