Two ministers will be replaced in a Cabinet reshuffle, announce PM Stanishev. He also proposed the creation of a new agency for national security in an effort to boost the fight against crime and corruption in this Balkan country.

"I accepted the resignations of Economy and Energy Minister Rumen Ovcharov and of Justice Minister Georgi Petkanov," Prime Minister Sergei Stanishev announced at a news conference, AP news agency reported.

Stanishev, who is also leader of the Socialist Party, had come under pressure to reshuffle his Cabinet after an unfolding corruption scandal implicating the economy minister and the government's chief investigator eroded support for the Socialists in recent weeks. The scandal appeared to be the main reason for the Socialist's poor showing at Bulgaria's first EU elections on May 20.

Ovcharov was implicated in a booming political scandal last month after the country's chief investigator accused him of trying to hinder an ongoing investigation into alleged corruption at the capital's central heating company. Despite being cleared by the prosecution of all accusations against him, Ovcharov offered his resignation to the prime minister Friday.

Petkanov, who became justice minister in 2005, had cited personal motives for his resignation. He had also served as interior minister from 2001-2005.

"The new appointments will be made after consultations within the coalition", Stanishev said. He added that his proposal for the creation of a new National Security Agency followed public calls for more transparency. "It should include some existing structures from the ministries of interior, defense and finances, because the fight against the shady business, against corruption is of national priority", Stanishev said.

Bulgaria has been under pressure from EU officials to reform its judiciary and pursue the fight against corruption. The European Commission reviews Bulgaria's progress later in June.

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