Longest serving Prime Minister in the EU quits over spy scandal

Luxembourg is to hold early elections after Prime MInister Jean-Claude Juncker announced his resignation following a secret service scandal.

Juncker bowed to pressure from his coalition partner after a parliamentary report concluded the security agency was engaged in illegal activity and misusing public funds.

"I'm not free from mistakes," admitted Juncker.

Although Juncker has denied any personal wrong doing a parliamentary vote laid responsibility for the service's activities at his door.

The Opposition called on the government to quit and to make way for a new government via new elections, arguing that while Luxembourg had a lot of problems, the government was preoccupied with all these scandals.

Juncker is to offer his resignation today. Once parliament is officially dissolved by Luxembourg's Grand Duke, elections must take place within three months.