The Spanish prime minister Mariano Rajoy has issued a televised denial or corruption allegations that are threatening to engulf his government and destablise the eurozone.
Mr Rajoy, 57, broke his silence to categorically deny allegations that he and senior members of his Popular Party (PP) have received secret cash payments from construction companies.
Mr Rajoy told Spanish television: “I need only two words: it’s false.” Insisting he had no intention to resign, he added: “I have never received nor distributed undeclared money.”
Earlier he held a extraordinary meeting of the PP to discuss revelations in the El Pais newspaper on Thursday which apparently showed photographs of Party ledgers with cash payments carefully recorded.
The story sparked angry protests in Madrid particularly outside the PP headquarters.
Demonstrators shouted “thieves” and “resign.” Mr Rajoy said: “It is not true that we (in this party) received cash that we hid from tax officials.”
In Brussels and across the world there are fears that if the corruption charges stick and Mr Rajoy is forced out, the uncertainty could plunge Spain and the eurozone into another, more dangerous phase of the debt crisis - with drastic implications for the fragile global economy.
Mr Rajoy, who was elected in a landslide victory in November 2011 on a pledge to reduce Spain’s debts, is considered pivotal to the eurozone’s stability.
Spain’s borrowing costs soared through danger levels last year as world bondmarkets took fright at the country’s vast debt pile and plunging property prices.
The country only escaped a Greek-style bail-out territory because of dramatic intervention by the European Central Bank (ECB).
The financial crisis and the Brussels-imposed austerity plans has taken Spain to the brink of civil war and pushed unemployed to record highs of 26pc.
The photographs published by El Pais allegedly show payments being made to PP members throughout the Spanish property boom of the 1990s and 2000s.
During the boom, property companies borrowed vast sums from Spanish banks to fund development contracts, many of which were granted by politicians.
Since the onslaught of the crisis, property prices have dropped by more than 40pc, leaving banks saddled with toxic debts which in turn have threatened to overwhelm the national finances.
El Pais said the photographs it had published were of ledgers kept by former treasurers Luis Barcenas and Alvaro Lapuerta between 1990 and 2009.
Money was allegedly paid by firms via Mr Barcenas, who stepped down in 2009.
He is currently under investigation for money-laundering. The party has denied making any “systematic payment to certain people of money other than their monthly wages”.
telegraph.co.uk
Mr Rajoy, 57, broke his silence to categorically deny allegations that he and senior members of his Popular Party (PP) have received secret cash payments from construction companies.
Mr Rajoy told Spanish television: “I need only two words: it’s false.” Insisting he had no intention to resign, he added: “I have never received nor distributed undeclared money.”
Earlier he held a extraordinary meeting of the PP to discuss revelations in the El Pais newspaper on Thursday which apparently showed photographs of Party ledgers with cash payments carefully recorded.
The story sparked angry protests in Madrid particularly outside the PP headquarters.
Demonstrators shouted “thieves” and “resign.” Mr Rajoy said: “It is not true that we (in this party) received cash that we hid from tax officials.”
In Brussels and across the world there are fears that if the corruption charges stick and Mr Rajoy is forced out, the uncertainty could plunge Spain and the eurozone into another, more dangerous phase of the debt crisis - with drastic implications for the fragile global economy.
Mr Rajoy, who was elected in a landslide victory in November 2011 on a pledge to reduce Spain’s debts, is considered pivotal to the eurozone’s stability.
Spain’s borrowing costs soared through danger levels last year as world bondmarkets took fright at the country’s vast debt pile and plunging property prices.
The country only escaped a Greek-style bail-out territory because of dramatic intervention by the European Central Bank (ECB).
The financial crisis and the Brussels-imposed austerity plans has taken Spain to the brink of civil war and pushed unemployed to record highs of 26pc.
The photographs published by El Pais allegedly show payments being made to PP members throughout the Spanish property boom of the 1990s and 2000s.
During the boom, property companies borrowed vast sums from Spanish banks to fund development contracts, many of which were granted by politicians.
Since the onslaught of the crisis, property prices have dropped by more than 40pc, leaving banks saddled with toxic debts which in turn have threatened to overwhelm the national finances.
El Pais said the photographs it had published were of ledgers kept by former treasurers Luis Barcenas and Alvaro Lapuerta between 1990 and 2009.
Money was allegedly paid by firms via Mr Barcenas, who stepped down in 2009.
He is currently under investigation for money-laundering. The party has denied making any “systematic payment to certain people of money other than their monthly wages”.
telegraph.co.uk
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