This is pretty problematic for the EU as an institution. It is actively undermining its already questionable legitimacy. The powers that be largely aren't democratically elected, and there really aren't any mechanisms with which European citizens can hold them accountable for their actions.

Every time they pull a stunt like this, this becomes a little bit more clear. If the EU wants to avoid the spread of euroskeptic populist parties, they should be working to patch the system and be building legitimacy and credibility, rather than be seen working to undermine it.