The EU faces its darkest hour yet as in an unprecedented move the entire European Commission resigns amid revelations of fraud, nepotism and mismanagement.
After a tense standoff with the European Parliament, all 20 commissioners including President Jacques Santer resign to prevent the parliament from sacking them after a scathing report into mismanagement at the commission reveals a complacent bureaucracy and culture of favouritism.
In September Romano Prodi is appointed new president of the commission promising radical change in the way it is run. Parliament approves his new commissioners - only a handful of the old commissioners are re-appointed.
