Luxembourg Prime Minister Jean-Claude Juncker has said he will suggest a snap election following a spying scandal.
The 58-year-old leader was under pressure to quit since a probe showed that he failed to inform parliament and had limited control over the country's security agency's illegal bugging of politicians,
The security agency was also accused of purchasing cars for private use and of taking payments and favours in exchange for access to local officials, Xinhua quoted media reports as saying.
Juncker denied responsibility for something he "did not know".
Juncker has served as the country's prime minister since 1995 and is the European Union's longest serving premier.
It remains unclear whether Juncker would run for the next election, which is expected to be held in October.