European parliament is directly elected. Council of Ministers use the same ministers serving in the national governments. European Council has the same heads of states that head the national governments. Which part of the rule making you cannot elect, as opposed to the national variety?
This is the procedure, indeed. But this is also the problem as it takes any real power from the votes of each country. If the people of a EU member country downvote their local party, this will only affect a small percent of the EU parliament while the country will still be binded to follow all the rulings and regulations voted by other country-members.
A wide globalization of what would anyone call a democracy, could turn it easily to a some-kind-of dictatorship, although I think that's a too strong word, to be fair.