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

Daily Show's Trevor Noah under fire for Twitter jokes about Jews and women
2015-04-01 0:01
Trevor Noah – the surprise choice to succeed Jon Stewart as high-profile host of satirical news program The Daily Show – has come under fire for a series of controversial tweets he posted before his appointment. The South African comedian – son of a Swiss-German father and half-Jewish South African mother – was criticised for having made tasteless jokes about Jews ...
Viking Ship Construction - by the Museum in Roskilde, Denmark
2015-03-31 19:54
(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.3"; fjs.parentNode.insertBefore(js, fjs);}(document, 'script', 'facebook-jssdk'));[6] #FraVragTilVirkelighed: Smidige planker Vikingeskibene er bygget af frisk træ. Konstruktionen er let og fleksibel og har stillet store krav til materialekvalitet. Som grundprincip følges træets naturlige strukturer for at opnå ...
60 Years of Research Links Gluten Grains to Schizophrenia
2015-03-31 1:05
Does the consumption of gluten-containing grains contribute to psychiatric disorders such as schizophrenia? Believe it or not, this question has been asked for well over 60 years by researchers who stumbled upon evidence that the removal of gluten from the diet results in improved symptoms, or conversely, that gluten grain consumption leads to higher prevalence of both neurological and psychiatric problems. Reports ...
Thousands of migrants dumped on Britain as French wriggle out of border promise
2015-03-30 19:56
Thousands of migrants could be dumped on Britain’s doorstep if France tears up a historic border agreement, it was claimed last night. Officials have vowed to do “everything in their power” to wriggle out of a treaty moving the UK border to Calais. The besieged town’s mayor Natacha Bouchart is prepared to spark a major diplomatic row by opening the frontier ...
Richard III laid to rest at Leicester Cathedral
2015-03-30 18:36
King Richard III was today laid to rest at Leicester Cathedral - more than 500 years after his death in battle. The monarch, who reigned from 1483 to 1485, was the last of the Plantagenet dynasty. Actor Benedict Cumberbatch read a poem by Carol Ann Duffy during the service. Also in attendance was Robert Lindsay, who played Richard III in a version ...
More News »