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Czech Prime Minister Stanislav Gross said Saturday he would resign and make way for a new coalition government because of a scandal surrounding the financing of his luxury apartment.

Gross did not specify when he would resign, but he said the Czech ambassador to the European Union, Jan Kohout, was his Social Democrat party's candidate to replace him.

The scandal arose over questions of how Gross paid for a luxury apartment. He first said he paid for it with his own money and a mortgage, but then he said he borrowed money from his uncle.

Gross, who has denied wrongdoing, has been struggling to hold his government together amid calls for him to step down. He survived a no-confidence vote last week.

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