European Label of Governance Excellence

The ELoGE essentially facilitates the standardization of good and democratic governance by local governments. Local governments holding the Label or who are in the process of acquiring it are recognized as those entities taking steps to improve in the field of good governance. These steps contribute to institutional development but also take visible strides in the quality of decision-making, resource use, and service delivery. The resultant gains directly impact the lives of citizens; at the same time, these gains increase the trust and satisfaction of internal stakeholders, namely the employees of local governments. A trust-based social environment increases both the sense of belonging as well as social harmony. Such an environment also helps solve long-term issues such as climate change, services to the aging population, as well as the problems characteristic of disadvantageous groups. In this setting, an improved and more inclusive relationship can emerge between the municipality and its citizens. Furthermore, the identification of the strengths and weaknesses of a governance relying on principles stands to increase institutional resilience and the quality of services to its citizens.

The identification of the strengths and weaknesses of a governance relying on principles stands to increase institutional resilience and the quality of services to its citizens.

Acquiring the Label and the sustaining process associated with the acquisition institutionalize the standard of the quality of good governance. This process also helps implement legislation and effectively manages operational risks. While minimizing risks, the process enables the production of the most inclusive, fair, and effective public value through improving the quality of decision-making and resource use. As shown at the preceding chapters, the expected benefits of the IMGM and ELoGE greatly overlap.

The Centre of Expertise for Good Governance (CEGG) provides an online platform for local governments to share good practices and generate international cooperation. The development of inter-municipal cooperation facilitates peer learning for local governments facing similar problems in urban governance.

Although the Label is in line with this legislation, the Label opens the avenue for the implementation of good governance principles where a regulatory gap exists.

The ELoGE functions as a tool for learning and improvement for local governments, a mechanism which is mostly in line with domestic legislation and the United Nations (UN) Sustainable Development Goals (SDGs). Although the Label is in line with this legislation, the Label opens the avenue for the implementation of good governance principles where a regulatory gap exists. By being in accordance with the SDG 16 and 17, the ELoGE allows local governments to contextualize and realize the concept of good governance.

The Council of Europe expects its member states to implement the following good governance principles.

Principle 1. Participation, Fair Conduct of Elections, and Representation

• Local elections are conducted freely and fairly, according to international standards and national legislation, and without any fraud.
• Citizens are at the center of public activity and are involved in clearly defined ways in public life at the local level.
• All men and women have a voice in decision-making, either directly or through legitimate intermediate bodies that represent their interests. Such broad participation is built on the freedoms of expression, assembly, and association.
• All voices, including those of the less privileged and most vulnerable, are heard and taken into account in decision-making, including over the allocation of resources.
• There is always an honest attempt to mediate between various legitimate interests and to reach a broad consensus on what is in the best interest of the whole community and on how this objective can be achieved
• Decisions are taken according to the will of the many, while the rights and legitimate interests of the few are respected.

Principle 2. Responsiveness

• Objectives, rules, structures, and procedures are adapted to the legitimate expectations and the needs of citizens.
• Public services are delivered; requests and complaints are responded to within a reasonable time frame.

Principle 3. Efficiency and Effectiveness

• Results meet the agreed objectives.
• Best possible use is made of the available resources.
• Performance management systems make it possible to evaluate and enhance the efficiency and effectiveness of services.
• Audits are implemented at regular intervals to assess and improve performance.

Principle 4. Openness and Transparency

• Decisions are taken and enforced in accordance with rules and regulations.
• There is public access to all information which is not classified for well-specified reasons as provided for by law (such as the protection of privacy or ensuring the fairness of procurement procedures).
• Information on decisions, implementation of policies and results are made available to the public in such a way as to enable it to effectively follow and contribute to the work of the local authorities.

Principle 5. Rule of Law

• The local authorities abide by the law and judicial decisions.
• Rules and regulations are adopted in accordance with procedures provided for by law and are impartially enforced.

Principle 6. Ethical Conduct

• The public good is placed before individual interests.
• There are effective measures to prevent and combat all forms of corruption.
• Conflicts of interest are declared in a timely manner and the persons involved must abstain from participating in relevant decisions.

Principle 7. Competence and Capacity

• The professional skills of those who deliver governance are continuously maintained and strengthened in order to improve their output and impact.
• Public officials are motivated to continuously improve their performance.
• Practical methods and procedures are created and applied to transform skills into capacities and produce better results.

Principle 8. Innovation and Openness to Change

• New and efficient solutions to problems are sought and advantage is taken of modern methods of service provision.
• There is a readiness to pilot and experiment new programmes and learn from the experience of others.
• A climate favorable to change is created in the interest of achieving better results.

Principle 9. Sustainability and Long-Term Orientation

• The needs of future generations are taken into account in current policies.
• The sustainability of the community is constantly taken into account.
• Decisions strive to internalize all costs and not transfer problems and tensions, be they environmental, structural, financial, economic, or social, to future generations.
• There is a broad and long-term perspective on the future of the local community along with a sense of what is needed for such development.
• There is an understanding of the historical, cultural, and social complexities in which this perspective is grounded.

Principle 10. Sound Financial Management

• Charges do not exceed the cost of services provided and do not excessively reduce demand, particularly in the case of important public services.
• Prudence is observed in financial management, including in the contracting and use of loans, in the estimation of resources, revenues and reserves, and in the use of exceptional revenue.
• Multi-annual budget plans are prepared with the consultation of the public.
• Risks are properly estimated and managed, including the publication of consolidated accounts and, in the case of public-private partnerships, by realistically sharing risks.
• The local authority takes part in arrangements for inter-municipal solidarity, fair sharing of burdens and benefits, and reduction of risks (equalization systems, inter-municipal co-operation, mutualization of risks, and so on).

Principle 11. Human Rights, Cultural Diversity and Social Cohesion

• Within the local authority’s sphere of influence, human rights are respected, protected, and implemented, and discrimination on any grounds is combated.
• Cultural diversity is treated as an asset, and continuous efforts are made to ensure that all have a stake in the local community, identify with it, and do not feel excluded.
• Social cohesion and the integration of disadvantaged areas are promoted.
• Access to essential services is preserved, in particular, for the most disadvantaged sections of the population.

Principle 12. Accountability

• All decision-makers, collective and individual, take responsibility for their decisions.
• Decisions are reported on, explained, and can be sanctioned.
• There are effective remedies against maladministration and against actions of local authorities which infringe civil rights.

Any member state of the Council of Europe and signatory of the Strategy for Innovation and Good Governance at the Local Level is eligible to apply for the ELoGE. Municipalities which are the closest to respecting all (or most) of the principles are therefore eligible for receiving the ELoGE. Any association or institution which has the relevant authority and capacity, may apply for ELoGE accreditation at the Council of Europe, to thus be able to award the Label in a respective country.

Any member state of the Council of Europe and signatory of the Strategy for Innovation and Good Governance at the Local Level is eligible to apply for the ELoGE.

The accredited entity is responsible for managing the process for awarding the Label, and for any actions and consequences as a result thereof. The entity commits itself to promoting the Label and the 12 Principles of Good Democratic Governance as well as to implementing the ELoGE in a meaningful number of municipalities within the period of its accreditation. Accredited entities on a regular basis, or at the latest before the end of their accreditation, should provide a narrative report describing their activities in relation to the ELoGE.

Local governments who wish to apply for the Label are evaluated against the 12 Principles of Good Governance and the relevant benchmark which contains 97 indicators. The assessment allows local governments to understand their strengths and their weaknesses when providing public services to the local community and exercising public authority. The ELoGE is awarded for one year by the national/regional body for the local government which has qualified for the Label with relevant evidence.

Local governments are assessed with the three tools in respect to the 12 principles. These tools are self-assessment benchmark, citizen, and councilor surveys. With the self-assessment benchmark, local governments evaluate their strengths and weaknesses. The questionnaires are used for cross-checking the results of the self-assessment conducted by a local government. The aim of the self-assessment benchmark is the adoption of practical arrangements of the good governance principles and a holistic assessment of institutions in respect to these arrangements. These abstract concepts become practical in the cycle of planning, implementation (activity or service), measurement, assessment, and learning. Additionally, the benchmark allows users to see the entirety of the institution and thus more accurately evaluate it.

The Self-Evaluation Benchmark

The 12 principles and relevant 97 indicators are defined and their expected practical measurements are provided in detail at the benchmark. With this tool, the local government is expected to identify its maturity for a specific principle with the relevant evidence. The level of maturity matrix is assessed according to the following definitions:

The 12 principles and relevant 97 indicators are defined and their expected practical measurements are provided in detail at the benchmark.

• Not applicable (0) Not applicable, do not know or hold no opinion about the indicator.
• Very poorly (1) The local government is aware of the key issues to be addressed but currently has no or very few approaches or activities developed to address them.
• Quite poorly (2) The local government recognizes key issues and develops approaches or activities to address them, although there has been limited practical implementation so far.
• Quite well (3) The local government has well developed plans and activities to address key issues with significant examples of implementation.
• Very well (4) The local government can show clear evidence of good practice which can be shared and is further developing an approach to ensure long-term and sustainable improvement.

The maturity matrix is used to determine if a municipality meets the criteria for the Label by totalling the individual scores for each Principle. (a) For each indicator in a given Principle, boxes are ticked and corresponding values (between 0 and 4) are noted. The average score for each Principle is the sum of values for all indicators divided by the number of indicators. If the resulting average is between 0 and 1.99, the Principle is not implemented and the Label shall not be awarded. If the result is 2 or more, this score is taken into account for the next step. (b) The scores for each Principle (2 or more) are summed up and divided by 12. If the result is 3 or more, the Label is awarded. If the result is lower than 3, the Label is not awarded. All scores will be calculated only on the indicators of the benchmark, not on the statements or the citizens and councilors’ surveys.

Citizen Survey

It is expected that the citizen survey required as part of the ELoGE assessment will provide a useful source of evidence to support self-assessment. The survey contains 12 questions corresponding to each of the principles in the benchmark. For instance, the survey evaluates the opportunities for citizen participation in local government decisions, a practice which is formulated at the principle(s) of Participation, Fair Conduct of Elections and Representation. The survey acts as a tool for evaluation and awareness raising among citizens regarding the ELoGE. Because earning the Label is not a one-time award, but an annual process, with the same procedures, by responding to the same questions, citizens will become familiarized with the 12 principles. Additionally, it is expected that the citizens will become more sensitive and observant of the level of good governance prevailing at the local governments. The citizen survey provides an opportunity to prioritize the integrated perspective, inclusive participation, quality of information sharing, and quality of institutional workings, all of which is incorporated in the IMGM. Furthermore, annual administration of the citizen survey is expected to increase the number of participants and thus create a data pool for comparative evaluation at local level.

Councilors Survey

The survey contains 12 questions corresponding to each of the principles in the benchmark for the assessment of councilors’ views. The survey functions as a way of cross-checking the quality of self-assessment made by a local government as well as awareness raising among counselors regarding good governance principles. In this way, the survey supports the strengthening of good governance implementation at the local government level and its delivery of services delivery.

The duration of ELoGE recognition is one year and municipalities need to apply annually to the National Platform (accredited body). The application process and consequent assessment take place in the following steps.

Steps of Application Process

The application process starts with the call made by the National Platform for inviting applications for the Label.

The National Platform organizes an event which promotes the process, i.e., where the details of the Label and application process are shared with municipal representatives. The event needs to be published on an official web site.

Upon the request of municipal mayors, councilors, and officials, training sessions are organized by the ELoGE certified trainers, focusing on the benchmark and its application. After reviewing the details of application, municipalities start to prepare the necessary documents and evidence. A citizen survey is to be conducted among the residents. Lastly, councilors complete the survey according to their views.

After completing these steps, municipalities apply to the National Platform with supporting evidence in accordance with the standards of the Council of Europe.

The duration of ELoGE recognition is one year and municipalities need to apply annually to the National Platform.

Steps of Assessment Process

The assessment process starts with the appropriate application of municipalities to the National Platform and submission of the relevant documents. The National Platform evaluates the applications according to the fulfillment of the administrative requirements and proceeds with the completed applications. At this stage, ELoGE trainers and relevant experts examine the supporting evidence and prepare preliminary reports for the jury. These reports are then assessed by each member of the jury and decisions are reached at a meeting. The municipalities that gain the right to hold the Label receive their ELoGE at a ceremony. Lastly, a country report is prepared for the Council of Europe by the National Platform.

IMGM incorporates the roadmap, processes, and steps of acquiring the Label. Implementation of the Model thus increases the likelihood of acquiring the ELoGE.

The Integrated Municipality Governance Model incorporates the roadmap, processes, and steps of acquiring the Label. Implementation of the Model thus increases the likelihood of acquiring the ELoGE. This approach also supports the renewal process of the Label holders and continuous improvement towards governance excellence.