EU executive arm resigns All 20 members of Executive Commission quit over stinging report NEW YORK (CNNfn) - All 20 members of the European Union's Executive Commission resigned Monday after a scathing independent report into fraud and cronyism.

The unprecedented move risks plunging the 15-nation EU into political crisis just weeks after the launch of the euro single currency and days before EU leaders meet to take key decisions on reforming the bloc's finances ahead of an ambitious expansion into eastern Europe.

"In the light of the report of the committee of independent experts, the members of the Commission decided this evening unanimously to present collectively their resignation, according to a statement by Commission President Jacques Santer.

The hard-hitting 144-page report, compiled by an independent panel of judicial experts in just six weeks, accused commissioners of losing control over the sprawling Brussels bureaucracy that proposes and implements EU laws.

The mass resignations surprised many officials, who felt only a handful of Commission members would be forced to step aside.

"We think it's a little unjust," a source close to EC Antitrust Commissioner Karel van Miert. "But it's the democratic process. The body should have been aware of what was happening and they took a collective responsibility."

Deputies from the 626-seat directly elected European Parliament earlier called on the Commission to resign or face being sacked.

Britain to seek reappointment

According to the BBC, Britain will seek the reappointment of two British European Commissioners. Quoting a government statement, the BBC said there was no evidence to implicate Sir Leon Brittan, a Commission vice president, and Neil Kinnock, responsible for transport policy, in any wrongdoing.

The Commission, the only EU institution that can propose and implement laws, was appointed by national leaders to a five-year term in January 1995. It is composed of two commissioners each from Britain, France, Germany, Italy and Spain and one from each of the remaining 10 EU countries.

External Relations Commissioner Hans van den Broek said Santer would elaborate on the Commission's move later Tuesday.

"One of the issues giving us concern is how the work will continue in the rest of this year."

He said Santer would meet current EU president, German Chancellor Gerhard Schroeder, in Brussels later Tuesday to discuss how to proceed with key Agenda 2000 reforms on EU financing and farm and regional aid spending programs.

EU leaders meet at a summit in Berlin next Wednesday to thrash out far-reaching EU funding and spending reforms to the EU's 85 billion euros ($93 billion) budget.

EU diplomats said the outgoing Commission would continue in a caretaker capacity with its current powers of proposing legislation until the 15 EU member states appoint a new team.

Agriculture Commissioner Franz Fischler said in a brief statement that the Commission's authority had been undermined.

"Europe cannot function without an effective and credible Commission which enjoys the confidence of the other institutions and of European citizens," he said.

Transport Commissioner Neil Kinnock, not mentioned in the fraud report, said in a statement: "As a member of the Commission I accept collective responsibility.

"I strongly supported the pledge made to Parliament in January to put all the recommendations of the committee of experts fully into effect. I honor that pledge now."

Lax controls cited

The experts' report, which lashed the Commission for its lax controls and for its failure to act once allegations of fraud and mismanagement surfaced, was particularly scathing about former French Prime Minister Edith Cresson, the commissioner in charge of EU educational and research programs.

The report said Cresson "failed to act in response to known serious and continuing irregularities over several years" and said it was unacceptable that she failed to inform parliament about the allegations. It also accused her of favoritism in bringing a dentist from her home town on to the Commission payroll as a scientific adviser.

"What we have is a clear-cut case of favoritism. A person whose qualifications did not correspond to the posts to which he was recruited," the report said.

In a stinging criticism of the Commission as a whole, the experts' report said: "It is becoming difficult to find anyone who has even the slightest sense of responsibility."

The report did, however, say that commissioners, who earn over $250,000 a year including expenses, were not personally involved in fraud and did not gain financially from it.

The European Commission includes the following members:

Jacques Santer, president, 61, Luxembourg, Christian democrat.

Sir Leon Brittan, vice president, 59, British conservative, responsible for trade policy and relations with North America, Australia, New Zealand, Japan, China, Korea, Hong Kong, Macao and Taiwan.

Manuel Marin, vice president, 49, Spanish socialist, responsible for relations with Southern Mediterranean countries, the Middle East, Latin America and some Asian regions.

Martin Bangemann, 64, German liberal, responsible for industrial affairs and information and telecommunications technologies.

Ritt Bjerragaard, 57, Danish socialist, responsible for environment and nuclear safety.

Emma Bonino, 51, Italian radical, responsible for fisheries, consumer policy and European Community Humanitarian Office.

Edith Cresson, 65, French socialist, responsible for research and development, education, training and youth.

Joao de Deus Pinheiro, 53, Portuguese liberal, responsible for relations with African, Caribbean and Pacific countries.

Yves-Thibault de Silguy, 50, French conservative, responsible for economic and financial affairs, monetary matters.

Franz Fischler, 52, Austrian Christian democrat, responsible for agriculture and rural development.

Padraig Flynn, 59, Irish conservative, responsible for employment and social affairs.

Anita Gradin, 65, Swedish socialist, responsible for immigration, justice and home affairs, financial control, fraud prevention.

Neil Kinnock, 56, British labor, responsible for transport policy.

Erkki Liikanen, 48, Finnish socialist, responsible for budget, personnel and administration.

Mario Monti, 55, Italian independent, responsible for internal market, financial services, customs and taxation.

Marcelino Oreja, 64, Spanish Christian democrat, responsible for culture and audiovisual policy, institutional matters, relations with the European Parliament and EU governments.

Christos Papoutsis, 45, Greek socialist, responsible for energy policy, small business and tourism.

Monika Wulf-Mathies, 56, German socialist, responsible for regional policies.

Hans van den Broek, 62, Dutch Christian democrat, responsible for relations with central and eastern Europe, the former Soviet Union, Mongolia, Turkey, Cyprus, Malta; the EU's common foreign and security policy and human rights.

Karel van Miert, 57, Belgian socialist, responsible for competition policy.

-- from staff and wire reports



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