Airlines find themselves on the European Commission Blacklist for a number of reasons. The interesting point is that airlines on that blacklist are more likely to have accidents, than non blacklisted operators. In terms of self fulfilling prophecies, Lion Air is a good recent example.
Blacklisted airlines also find themselves paying higher aviation insurance premiums, given the enhanced risk. Additionally, totalling a 737NG for US$50m will also increase your renewal premium considerably.
The IATA IOSA programme has had proven benefits to enhancing the air safety of participating airlines, with premium reductions by Underwriters acknowledging that fact of risk reduction.
So, the EU black list is not perfect, but it is a good start given the US does not have the political/commercial will to name and shame.