I think it's more the Nordic countries which are seen as socialist; the EU as an institution is the kind of light-touch, states are sovereign, "fundamental rights and trade only" focus that Republicans seem to wish the USA federal government was.
Nordic countries are absurdly capitalistic nations, Sweden has one of the biggest wealth inequalities in the world (not income, wealth, the true measure of capital).
Sweden also has one of the freest markets on Earth, even more than the USA.
