Governance Index Rises, But Improvement May Cause Concern

Poland's 2025 Governance Index signals a welcome improvement in local government autonomy, with the score climbing to 54.30 points from 52.55 in 2024. The Batorego Foundation, which compiles the index, notes a less confrontational relationship between the central government and local authorities. Central government language towards municipalities, districts, and self-governing voivodeships has become more partner-like, and supervisory practices have improved.

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The relationship between the government and territorial self-government is less confrontational, supervisory practice has improved, and the language of the central authorities towards municipalities, districts, and self-governing voivodeships has become more partner-like.

However, this progress is tempered by a concerning reality: the index remains nearly 20 points below its 2014 peak of 73.58 points. This substantial deficit highlights a systemic rollback in decentralization that has yet to be reversed. While the shift in government has fostered a better climate, it has not led to a systemic return to decentralization. Local governments continue to function more as implementers of public policies than as co-creators, lacking real participation in the decision-making process.

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This improvement should be worrying. It is real, but too weak and too selective to speak of a return to decentralization.

The Governance Index assesses local autonomy across three dimensions: task and financial potential, political strength, and systemic strength. The political component, in particular, shows stagnation. After a sharp decline from 20.75 points in 2014 to 3.75 in 2023, it rose to 8.75 points after the change in government and has remained there. This indicates that local governments are still not genuine participants in decision-making, especially when projects affecting their tasks, revenues, or competencies bypass the Joint Commission of Government and Local Self-Government, often through parliamentary initiatives.

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In 2014, the Index was 73.58 points, so the current result remains nearly 20 points lower than a decade ago. This is not a technical difference in the table, but a measure of systemic regression that has not yet been reversed.

Financial autonomy also remains limited. While a new law on local government revenue has improved some indicators by reducing the share of earmarked grants and increasing more flexible revenue sources, it has not restored fundamental fiscal control. Local governments have gained some spending flexibility, but their revenue self-sufficiency has fallen below 30%. The new model, relying more on personal and corporate income tax shares, also fails to address territorial inequalities, with more financially robust municipalities benefiting disproportionately.

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Local governments are still not real participants in the decision-making process, especially when projects concerning their tasks, revenues, or competencies bypass the Joint Commission of Government and Local Self-Government, for example, by using the parliamentary path.