The paper tests two hypotheses using the composite indicators of economic and social development of rural areas (WRG, WRS) as well as European Quality of Government Index (EQI) for EU member states: (1): The quality of governance is strongly and positively associated with economic development of EU rural areas; (2) The quality of governance is strongly and positively associated with social development of EU rural areas. Pearson’s correlation analysis was carried out for the EU as a whole and for the groups of its member states for 2010 and 2013. Research results show that the indicators of quality of government at the national (WGIy ) and regional (Cqog) levels are highly, positively and significantly correlated with indicators of economic and social development of rural areas in countries across the EU. The research found no evidence suggesting any difference in the strength of the relationship between quality of government at national level and the two development indicators between groups of EU countries with various levels of rural development.