The fraud report was harshest on Edith Cresson, a former Prime minister of France, when it said that she "failed to act in response to known, serious and continuing irregularities over several years" in educational and other programs for which she was responsible. Ms Cresson was the commissioner for research, education, youth and training. The report said that when informed of fraud and waste by an outside contractor who squandered $160 million meant for a youth training program, she failed to stop it, and she was criticized for getting a short-term European Union research job for a friend in 1995.The man was later judged to be unqualified. He was paid for 10 months but was allegedly out sick for nine.

The report condemned others for cronyism, too, The Associated Press reported from Brussels on Monday night.

Regional Development Commissioner Monika Wulf-Mathies of Germany, and Portugal's Joao de Deus Pinheiro, the commissioner for relations with developing nations, put friends and relatives on the European payroll, the report said.

It cited Development commissioner Manuel Marin, a Spaniard, for lax control over the running of an aid program for Mediterranean nations, for irregularities in hiring, and for doing too little too late to stop fraud in the European humanitarian aid budget in the early 1990s.

The report said there was no evidence any commissioner "was directly and personally involved" in fraud. The commissioners, who are paid about $200,000 a year, had denied any wrongdoing.

Though the report did not find any irregularity in the office of Santer, the commission's president, it did express dismay he did not act sooner on allegations of fraud in security contracts for European Union buildings in Brussels dating back to 1993.

The fraud report stemmed from testimony last December in the European Parliament by Paul van Buitenen, a Dutch auditor, who complained about the failure of the commission to eradicate fraud.

The solution ?

But the crisis only deepeneded as a stalemate developed between politicians and top EU officials. 24 hours after the Executive of the European Commission resignation, it was still not clear who would take over the task of proposing and overseeing EU policies.

Though Mr Santer insisted he was blameless and ready to carry on with his job, saying in a news conference that "I am whiter than white," some leading European politicians are demanding broad changes as the first step to making Europe work more efficiently.

And, the crisis comes at a time of difficult decisions and internal strife. The Europeans are now in the midst of a trade dispute with the United States over bananas as well as disagreements over hormone-fed beef, genetically modified crops and noise from aging U.S. aircraft.

The bedrock on which the European Union rests, Franco-German relations, has been shaken by demands from German Chancellor Gerhard Schroeder that the net German payment to the EU of $11 billion be reduced. (link to Europa site)

Gerhard Schröder, German Chancellor and the current EU chairman, admitted no quick solution was likely. During a visit to London to see UK Prime Minister Tony Blair, he asked the outgoing commission - including Mr Santer - to continue as a caretaker regime until the heads of government and parliament decide how to proceed.

Mr Schröder said it was hoped that a successor to Jacques Santer could be named at a summit in Berlin next week, adding however that a second summit may also be needed to finalise the choice. Germany is also keen for the issue not to overshadow next week's summit in Berlin which was supposed to deal with the long-running wrangle over the EU budget.

Many different views are emerging from European capitals and a consensual agreement on the future of the commissioners looks a long way off. Germany and England favour a fast replacement of the commissioners, whereas others like Spain and France would prefer the change to take place only after key EU financial matters are settled, and preferably after European Parliament elections in June.

 

However, MEPs (European Members Of Parliament) are threatening another vote of censure against the new commission if either the former French Prime Minister, Edith Cresson, or Mr Santer return - even in a caretaker role.

The President of the European Parliament, Jose Maria Gil-Robles, says all 20 commissioners must leave their posts immediately rather than continuing on a caretaker basis. However, the Spanish Government suggests that Mr Santer and his team continue in a caretaker capacity until their original mandate runs out in January.

Meanwhile, Jacques Santer was defiant, saying he was "shocked" by the conclusions and tone of the report which he said was "unbalanced". The day-after (his resignation), he was claiming he had "full credibility" to carry on with his job.

In London, Mr Blair criticised Mr Santer's reaction, urging his swift removal to allow a successor to be appointed to implement "root and branch" reform. "The president of the commission should leave as soon as it is reasonably and practically possible and a new president should take his place," Mr Blair told Parliament.

While government front-runners to the position include Dutch Prime Minister Wim Kok, former Italian Prime Minister Romano Prodi and Commission Vice President Sir Leon Britran, Europe's media have named NATO Secretary General Javier Solana, Portuguese Prime Minister Antonio Guterres and Spain's former premier Felipe Gonzalez as possible candidates.

And today, as this article is about to be posted, Italian Romano Prodi seems to be the favorite for the top position, with the backing of Germany and France.

Jacques Santer announced his candidacy for a seat in the European Parliament, as candidate for the Luxembourg national list of his political party, the centre-right Christian Socialist Party.

He proves once again that politics is about resiliency and quick recoveries, for it seems likely to observers that he will be elected in June, thus joining the ranks of those who ousted him from his EU Commission seat.