THE INFLUENCE OF EUROPEAN FINANCIAL STABILITY FACILITY ON SYSTEM OF GOVERNANCE IN EUROPEAN UNION COUNTRIES

The European Financial Stability Facility (EFSF), as a company which was agreed by the countries that share the euro on May 9th 2010 and incorporated in Luxembourg under Luxembourgish law on June 7th 2010, have to preserve financial stability of Europe's monetary union by providing temporary financial assistance to euro area Member States if needed. This article examines in witch way EFSF can influence the system of governance in an emerging economy. We argue that "good governance practices" in EU countries are significant presence of European Financial Stability Facility, and cannot mitigate the negative effect of controlling on corporate performance. Most good governance practices are mainly designed to resolve conflicts between shareholders and the management but not conflicts between controlling and minority shareholders. To measure performance in governance, it is important to focus on what the knowledge workers do and hence view knowledge as something one does, namely the practices, instead of something one has. Global governance of distributed employees is therefore successfully managed through key performance measures and through understanding projects through their multiple contributions, at both an individual and an organizational level. Global long term governance needs are strategic for the entire firm. The paper rests on an in-depth case study about implementation of government reliable projects.