Spain’s Prime Minister Accused Of Receiving Illegal Cash Payments As Corruption Scandal Widens
2013 02 07

By Agustino Fontevecchia | Forbes.com



A corruption scandal blew up in Spanish Prime Minister Mariano Rajoy’s face over the past few days, sending the stock market down in a crash as bond yields surged dramatically. As opposition leaders call for his head, Rajoy rejected accusations that he and other top members of the Popular Party (PP) received illegal cash payments, promising to post his tax returns online so that “truth may prevail.” It appears unlikely that the so-called Gurtel Scandal will force Rajoy out, but the return of political rumblings have unsettled markets after months of relative calm, raising fears that the European sovereign debt crisis might flare up once again.

“Never, and I repeat, never have I received, nor distributed black money,” Rajoy said last Saturday, responding to accusations that he had formed part of a corruption ring that received money from a construction company in exchange for public contracts.


Mariano Rajoy with Germany’s Angela Merkel at a press conference in Berlin on Monday
The scandal, uncovered by Spanish daily El Pais over the past few days, bulldozed market confidence in Madrid, sending the stock market down nearly 4% on Monday. After months of continued improvement, Spanish bond markets deteriorated as well, with the yield on 10-years jumping dramatically to 5.44%, hitting its highest levels since mid-December.

Rajoy referenced the case again Monday in Berlin, where he was meeting German Chancellor Angela Merkel, saying “everything that refers to me […] is totally and absolutely false.” The Prime Minister has found himself tied to a corruption scandal that involves the PP’s former national treasurer, Luis Barcenas, who has reportedly stashed €22 million ($30 million) in a Swiss bank.

[...]

Read the full article at: forbes.com



Related Articles
Spain Now Faces a Systemic, Societal, and Sovereign Collapse
Red Cross makes Spain appeal as economic crisis bites
Eurozone crisis: Spain inching closer to a meltdown
Anti-austerity clashes in Spain (Photos)
Storm looming in eurozone as Spain economy falters
IMF Head and Sarkozy embroiled in new corruption inquiry
Barclays rate rigging crisis shows ’corruption at heart of banking’


Latest News from our Front Page

Sweden Recognizes Palestinian State; Israel Upset
2014 10 31
Sweden on Thursday became the biggest Western European country to recognize a Palestinian state, prompting a strong protest from Israel, which swiftly withdrew its ambassador from Stockholm. The move by Sweden’s new left-leaning government reflects growing international impatience with Israel’s nearly half-century control of the West Bank, east Jerusalem and its blockade of the Gaza Strip. It also comes during increased ...
Fed-Backed Study: How to Brainwash Public into Fearing “Climate Change” Like Ebola
2014 10 31
$84K study seeks ways to make public fear "climate change and overpopulation" The National Science Foundation is funding a study to determine how to brainwash the public into fearing “climate change and overpopulation” as if they were Ebola. The NSF awarded an $84,000 grant to researchers at the State University of New York at Buffalo yesterday to figure out how to make ...
Brain decoder can eavesdrop on your inner voice
2014 10 31
As you read this, your neurons are firing – that brain activity can now be decoded to reveal the silent words in your head TALKING to yourself used to be a strictly private pastime. That’s no longer the case – researchers have eavesdropped on our internal monologue for the first time. The achievement is a step towards helping people who cannot ...
6 Million Lies
2014 10 30
“If you do not specify and confront real issues, what you say will surely obscure them. If you do not alarm anyone morally, you yourself remain morally asleep. If you do not embody controversy, what you say will be an acceptance of the drift of the coming hell.” C Wright Mills. I need to share information I have discovered ...
Google’s New Computer With Human-Like Learning Abilities Will Program Itself
2014 10 30
In college, it wasn’t rare to hear a verbal battle regarding artificial intelligence erupt between my friends studying neuroscience and my friends studying computer science. One rather outrageous fellow would mention the possibility of a computer takeover, and off they went. The neuroscience-savvy would awe at the potential of such hybrid technology as the CS majors argued we have nothing to ...
More News »