Luxembourg today appeared set for a snap October election, after Prime Minister Jean-Claude Juncker's coalition collapsed in a scandal over misconduct within the tiny European nation's secret service.
Despite the furore, Juncker's Christian Social People's Party (CSV) quickly backed him to run again for the prime minister's post.
A statement from the royal palace yesterday said the Grand Duke Henri will "take time to reflect and will hold consultations" after Juncker headed there to propose that the duke call early elections.
The finance ministry, however, said that parliament would continue work until October 8 with elections on October 20, seven months ahead of schedule. The cabinet will meet as usual each week.
Asked earlier yesterday about a re-election bid, Juncker said: "It will depend on my party but I do have some indications that it will want me to run."
The CSV held a meeting yesterday evening, after which it announced that it would back him to run again.
Juncker, Europe's longest-serving leader, acted after his junior coalition partners, the Socialists, broke ranks in a rare moment of high political drama over Luxembourg's dysfunctional intelligence service, disavowing the government over the premier's response to the scandal.
The drama was triggered by a parliamentary committee report alleging a series of misdemeanours by the country's SREL secret service, which the premier is supposed to oversee.
Misconduct from 2003 to 2009 included illegal phone-taps, corruption, and even a dodgy trade in luxury cars for private gain.
Though aged only 58, Juncker has been in office for 18 years and in government for 30.
He is best known in Europe for his tumultuous eight-year stint as head of the eurozone finance ministers Eurogroup, which ended in January.
His opponents said he had been too busy steering the single currency through its crisis to do his job properly at home.
"The intelligence service was not my top priority," Juncker told parliament.
"Moreover I hope Luxembourg will never have a prime minister who sees SREL as (his or her) priority."
Socialist leader Alex Bodry said: "There were serious dysfunctions. The prime minister's responsibility is at stake.
