The problem of quality of governance is one of the most important issues raised nowadays by international and local organisations. In order to adapt to the rapid processes of globalisation and glocalisation, various methods are being sought to optimise forms of democratic governance in Western countries or among countries which are leaning towards the West. The aim of the article is to increase government accountability and responsibility, promote citizen involvement, and strengthen government-societal relations and trust. In order to achieve this goal, the European Union proposes to give more powers to local government institutions, because they are closest to the citizens, can more effectively assess their needs, and attain them more effectively. To achieve this goal, the 12 principles of Good Governance, recommended by the Council of Europe, are used, and ELoGE (European Label of Governance Excellence) is used as a tool to assess the existence of these principles in local government. The purpose of this article is to identify factors that determine the implementation of the principles in local government, and to ascertain the most important characteristics that would influence the implementation of Good Governance in local government, taking into account the ELoGE evaluation methodology.