Types of Decentralization. Romania's Positioning in the European Context

Abstract

This article focuses on the analysis and evaluation of the level of decentralization in Romania, compared to the European Union average, examining the three essential dimensions of decentralization: fiscal, administrative, and political. The main aim of the article is to analyze these types of decentralization and to assess Romania’s positioning relative to the EU average, based on relevant indicators and scores reported by the European Committee of the Regions. The goal is to determine the degree of practical implementation of decentralization, beyond the existing formal framework. Decentralization is defined as the transfer of administrative and financial competences from the central level to local authorities, giving them the ability to directly and efficiently manage community-specific issues, making their own decisions in areas such as internal organization, investment prioritization, and public service delivery. The methodology used in this article is based on a comparative analysis of official indicators provided by the European Committee of the Regions. For each dimension of decentralization (fiscal, administrative, and political), Romania’s scores and rankings were examined in relation to other EU member states, using a quantitative and graphical approach to highlight performance differences. With an overall average score of only 1.4, Romania ranks 20th out of 27 in the EU ranking, below the European average. This confirms that although there has been progress in the political and administrative dimensions, decentralization remains limited, especially from a financial perspective. This significant financial dependence on the central level represents a major obstacle to improving the efficiency of local public services and promoting balanced territorial development. At the administrative level, Romania has good local institutional capacity, but the transferred competences remain modest, and central control is still significant. In contrast, political decentralization is better shaped, with increased influence of local authorities in the decision-making process.