Future applicants for top posts in the executive arm of the European Union will be judged on merit, rather than nationality.

And senior officials will lose some of their tax-free privileges.

Neil Kinnock: Reform from the top

From the end of this month, Commissioners will no longer be able to buy cut-price alcohol, cigarettes and household goods in Brussels - a perk they have enjoyed for nearly 40 years.

Their senior staff will still benefit, but only for one year after their arrival.

The shake-up comes six months after the mass resignation of the previous Commission amid allegations of mismanagement and favouritism.

Biggest shake-up in history

Neil Kinnock, who is in charge of reforming the Commission, said the overhaul had to start at the top.

The BBC's Justin Webb: ''A signal that fraud will not be tolerated''

''This is the biggest single package of changes to the organisation of the Commission in the history of the institution,'' he added.

''Nationality will no longer be the determinant in appointing a new occupant to a specific post. [This] means an end to the convention of attaching national flags to senior positions.''

Promotion for women

The move comes less than two weeks after the new Commission, led by former Italian Prime Minister Romano Prodi, took over the reins.

The BBC's Justin Webb in Brussels says the reforms are intended to send a clear signal that incompetence and fraud will no longer be tolerated.

The Commission said it would also shortly announce ways of promoting more women to senior management posts.