ABSTRACT The role of culture in democratization processes has increasingly been emphasized by the EU. Insisting on the value of culture for peaceful inter-community relations, the European Commission argues that cultural and artistic spaces can function as spaces for deliberation facilitating alternative engagement with politics through debate, education and free expression. The need for such spaces has become more urgent in a time in which democracies have come under pressure. This article examines how civil society actors in the Western Balkans create spaces of deliberation by engaging in EU funded cultural initiatives. In the projects that are being developed, civil society actors experiment with different forms of community-based management of resources and co-production, opening up new perspectives for social and political transformation. Their insistence to generate radical imagination through culture and arts and to create instances in which a different world can be prefigured has led to a boost of citizen participation in cultural projects which resulted in the emergence of ‘counter-public’, self-managed, post-Yugoslav spheres. In indirect, unexpected and contradictory ways, the EU funding schemes are both subject as well as facilitators of the discussions held at these spaces adding new dimensions to European democratization processes.