The present article contributes to the debate on the failure or success of European Works Councils (EWCs) as an institution of European industrial relations. To this end it takes stock of EWC performance from various points of view. First, a quantitative evaluation of the development of EWCs, based on the ETUI database, is used to show that EWCs have become an essential element of European industrial relations. Second, we show that EWCs are a dynamic, constantly developing institution of employee representation. Their significance is assessed, including by looking at their institution-building capacity on various levels. The article also considers the future of EWCs. In this context the recent recast Directive 2009/38/EC is briefly discussed. Functional developments of EWC practice (signing company-level transnational agreements) are identified as new challenges for the coming years. The article concludes by arguing that the firm position of EWCs in European industrial relations can be viewed as a self-evident success, and has had positive spillover effects resulting in provisions on employee representation in other EU instruments. PUB ABSTRACT