Paper/Speech Details of Conference Program for the 20th NISPAcee Annual Conference Program Overview Local Government Author(s) Dominika Wojtowicz Kozminski University Warsaw Poland Title EU funds as the basis for autonomy of local-government units in terms of local investments File Paper files are available only for conference participants, please login first. Presenter Dominika Wojtowicz Abstract In Poland local government was reactivated in 1990 following a 40-year break. A crucial factor determining the independence and self-reliance of local-government units is their financial self-sufficiency. Pursuant to the Constitution of the Republic of Poland local-government units are guaranteed a share in public income in the amount corresponding to tasks assigned. The European Charter of Local Self-Government also emphasises the profound significance and importance of independence and self-sufficiency of local government. The Charter contains a catalogue of basic, yet model principles, according to which the financial management system of local communities should be developed. In the sector of local-government units expenditure always determines the sources of its financing. The scope and nature of income in the budgets of communes condition the ability to fulfil their tasks that include undertaking investments fostering local development. Since, generally, the level of their own income is insufficient to finance the tasks being carried out, an efficient mechanism for the external funding of budget is necessary. External funds, through subsidies and grants, provide communes with a stable source of income; however at the same time such funds make them dependent on government administration that has an influence on the amount and deadlines for allocating this income as well as on the types of expenditure it is to cover. Therefore, EU funds, assigned by communes to local development-related investments, have become a significant element supplementing income in their budgets. As previous research shows, EU funds, used by communes, also trigger the greater activation of own resources allocated for this purpose. Hence, not only do not local governments replace own resources with EU money in financing development projects, but also a nominal increase in own funds is greater than a rise in EU resources used (calculated year-on-year). EU funds have appeared to be a catalyst for financing a greater number of development investments. The paper focuses on the role of EU funds as an instrument securing autonomy for local governments in terms of local investments. It reviews a thesis that the financial autonomy of communes in Poland in terms of investments is strictly related to the availability of EU funds. The research centres on analysing the amount and structure of investment expenditure incurred by Polish local governments prior to and following Poland's accession to the EU as well as the sources of its financing. Selected aspects of legal regulations (and their amendments) regarding investment expenditure financing in Poland after 1990 to the present day are also presented. Research tools include the analysis of statistical data, legal acts, literature and qualitative surveys (interviews with the representatives of selected local governments).
