Spain’s Prime Minister Accused Of Receiving Illegal Cash Payments As Corruption Scandal Widens
2013-02-07 0:00

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

Activists Plan to Burn American Flags in New York City Ahead of Fourth of July
2015-07-01 1:52
Burning the flag in Charleston, South Carolina on June 22, 2015 A group calling for the immediate disarmament of the New York Police Department plans to burn American flags in a Brooklyn park on Wednesday, just days before the Fourth of July holiday. “Disarm NYPD” announced the “Burn the American Flags” event on Facebook, inviting individuals to join the organization at Fort ...
Ruiz: Diversity of New York City languages makes staying involved in kids’ education difficult for immigrant parents
2015-07-01 1:08
Immigrant parent seek better translation and interpretation services from the Department of Education at the New York Immigration Coalition. New Yorkers, who come from every corner of the world, speak 180 languages. Not surprisingly, nearly half of public school students speak a language other than English at home. This makes life difficult for the city's Department of Education, which, according to federal ...
Ethnic Studies to Become Mandatory in Sacramento Schools by 2016
2015-06-30 22:36
The fourth most diverse school district in the nation is finally adding an ethnic studies graduation requirement—in 2020. The Sacramento City Unified School District's Board of Trustees unanimously approved the proposal from its Student Advisory Council on June 4. The proposal will create an ethnic studies pilot program for fall 2016. In collaboration with community organizations, local university professors and college students, ...
It Begins: New Calls To Strip Churches of Tax Exempt Status After Same-Sex Marriage Ruling
2015-06-30 20:22
For years conservatives and proponents of religious liberty in America have warned that if same-sex marriage became legal, the left would then pursue revoking the tax exempt status for religious institutions, particularly Christian churches, around the country. Just days after the Supreme Court ruled in a 5-4 decision that gay marriage is a constitutional right, progressive activists like Mark Oppenheimer of ...
Physician Linking Autism - Vaccines Found Shot Dead.
2015-06-30 3:38
James Jeffrey Bradstreet was a hero to many parents. He spent a great part of his life trying to fight for those children who sustained injuries from vaccines via the creation of medical procedures. This included his very own son. Clearly, his ideas and concepts and science were not accepted by all and created a great many heated debates online. On ...
More News »