Shoe shop chain Barratts Priceless makes 1,600 staff redundant

 

The high street gloom deepened on Friday as more than 1,600 workers at shoe chain Barratts Priceless were made redundant and 400 jobs were put at risk following the collapse of toy chain Hawkin's Bazaar. Barratts' administrators Deloitte said the 1,610 full- and part-time staff who manned its 371 concessions in stores such as Dorothy Perkins would be paid up until the end of Saturday. The Bradford-based shoe group collapsed this month when 170 of its 3,840 staff were laid off and 18 of its 191 stores closed. Deloitte partner Daniel Butters said it was hopeful that some retail jobs could be saved as the administrators were in "active discussions to rescue a significant part of the remaining business". The jobs blow came as restructuring specialist Zolfo Cooper was formally appointed at Hawkin's parent company Tobar, which also owns toys and children's accessories retailer Letterbox. The group, which also has a home shopping arm, employs 380 full-time staff at its 65 stores and head office in Beccles, Suffolk. The failure of Hawkin's, following the crucial Christmas trading period, is the second among retailers this week: fashion chain D2 Jeans has also folded. D2's administrator BDO immediately closed 19 of its 47 UK stores, making more than 200 employees redundant. No job losses have been announced at Hawkin's, with Zolfo Cooper saying the business would be run as a going concern. The 55 "pop-up" stores Hawkin's opened for Christmas, which employed 400 temporary staff, will close as planned. Zolfo Cooper's Peter Saville said: "Hawkin's has experienced exceptionally challenging trading conditions of late. At this stage we intend to continue to trade the component parts of the group whilst we seek a buyer for all or parts of its operations." Hawkin's was set up in 1973 and sells quirky toys, gifts, games and gadgets using the tagline "things you thought had gone forever, things you never even knew existed". Insiders suggested that a buyer would be found for at least part of the loss-making business, which at last count had debts of £42m.

Spain sets out 8.9bn euros of new austerity measures

 

Spain's new conservative government has outlined 8.9bn euros ($11.5bn, £7.5bn) in new spending cuts and tax rises to lower the country's borrowing. The announcement is the first in a wave of austerity measures, with a total of 16.5bn euros to be cut in 2012. It also said Spain's 2011 deficit will be about 8% of its output - higher than the 6% seen by the previous government. The Popular Party last month ousted the Socialists from power at elections amid deep economic gloom. The government of new Prime Minister Mariano Rajoy has vowed to meet Spain's target of reducing the public deficit to 4.4% of gross domestic product in 2012, no matter what. On Friday, Deputy Prime Minister Soraya Saenz de Santamaria maintained a freeze on public sector wages for another year and ruled out practically all government hiring. "This is the beginning of the beginning," Ms Saenz de Santamaria said. "We are facing an extraordinary, unexpected situation, which will force us to take extraordinary and unexpected measures." Taxes on the wealthiest Spaniards will also be raised for at least two years, raising 6bn euros, she said. Spain's borrowing costs have jumped in the last year - reaching as high as 6.7% for 10-year debts - as investors feared that Spain might join Greece, the Irish Republic and Portugal in needing a bailout. The country's economy has shrunk sharply since a housing bubble burst in 2008, and it has an unemployment rate of 21%, the highest in Europe. The austerity measures have sparked a number of large protests across the country.

600,000 people kick the habit in first year of Spain's extended smoking legislation

More than 25% of the Spanish still smoke however

EFE archive

Around 600,000 people have given up smoking since Spain’s tougher smoking legislation, which bans smoking in all closed public spaces, came into force on January 2, 2011. The CNPT National Committee for the Prevention of Smoking says that 500,000 fewer packets of cigarettes have been sold during that time.

They said in their provisional results released on Tuesday that hospital admissions for acute myocardial infarction have dropped by 10% and for asthma attacks in children by 15%.

The Committee notes that the legislation has not had a negative effect on bars and restaurants, nor on tourism which rose by 7% in 2011. Compliance with the law is high, and ‘it has been accepted by the Spanish as if it were natural, apart from some isolated incidents’, they said.

EFE however reports that, despite the news, more than 25% of the Spanish are still smokers. It compares with other countries such as Canada, Australia and Switzerland where the rate is below 15%.

Spanish Monarchy reveals budgets and costs for the very first time

This year the global cost was 8.43 million €.

The Spanish Royal Family - Photo EFE

The budget for the Spanish Royal Family has been published and placed online for the very first time in a new effort of transparency and shows the global cost of the Royal Household in 2011 was 8.43 million €.
The amount of that going to the Royal Family is 814,128 €, 9.65% of the total budget, while other personnel costs were 4,039,000 or 47.89%.

Other current costs for services were 3,275,000 € or 38.83% of the total, and in addition there were 100,000 € for royal investments and 206,000 for a contingency fund.

The accounts show that the King himself gets 140,519 € as a wage, and then 152,233 € for representation expenses.

The Prince of Asturias gets half the amount assigned to the Monarch, while the Queen, Princess of Asturias and the Infantas Doña Elena and Doña Cristina only get representation costs in proportion to activities each year. The total budget this year for those costs had a limit of 375,000 €.

Iñaki Urdangarin and Jaime de Marichalar do not get any income from the royal budget.

The royal household has made it clear that both the King and the Queen, as well as the other members of the royal family are all subject to tax, and annually present an IRPF income tax declaration.

By the way to compare, the British Royal Family spend 32.1 million pounds, abot 40 million €.

Minimum wage in Spain to be frozen for 2012

The wage will remain at 641 €

Photo EFE

Unions sources say that the Government is to freeze the minimum wage for 2012 at 641 €. The inter-professional minimum wage in Spain is one of the lowest in Europe.

For 2011 the minimum wage for 12 monthly payments in Euros, according to Eurostat is as follows.
Luxembourg – 1,757.50
Ireland – 1,461.80
Holland – 1,424.40
Belgium – 1,415.20
France – 1,365.00
U.K. – 1,138.50
USA – 940.40
Greece – 862.80
Spain – 748.30
Slovenia – 748.10
Malta – 664.90
Portugal – 565.80
Turkey – 384.80
Croatia – 381.10
Poland – 348.60
Czech Republic – 319.20
Slovakia – 317
Lithuania – 281.90
Hungary – 280.60
Estonia 278.0
Lithuania 231.70

The Minimum Wage in Spain has been losing purchasing power having been increased in both 2010 and 2011 at less than the IPC inflation rate. This year annual inflation in November was 2.9% at the end of November, so minimum wage workers are set to lose even more purchasing power.

For workers who are part time for the same company and do not exceed 120 days a year, the minimum wage is 30.39 € a day, and for those domestic workers who are paid by the hour the minimum is 5.02 € per hour worked.

Both the CCOO and UGT unions had written to the previous Minister for Employment, Valeriano Gómez, calling for the minimum wage to be inflation linked. In that letter the unions said that the economic crisis ‘cannot be used as an excuse to forget the objective of reaching a minimum wage which is 60% of the average wage in the country’.

Man arrested for domestic violence murder in Sevilla

The victim is his ex partner and Spain's 60th victim of domestic violence this year

The building in Marchena where Inmaculada D. was killed - EFE

Domestic violence in Spain claimed the year’s 60th victim on Tuesday night when a 29 year old woman, Inmaculada D., died at the hands of her ex partner in Marchena, Sevilla. Her killer is named as Fernando F.G., who is also her distant uncle and the father of her three year old daughter.

The victim was stabbed to death and her current boyfriend received treatment for a minor stab wound.

EFE reports that after the stabbing the assailant went to a local bar before returning to the scene of the crime, a flat on Calle Maestro Moreno Torroba, where he was arrested by police without putting up any resistance. It’s understood that he had been under a distancing order since the summer.

A minute’s silence was held outside the Town Hall building in Marchena on Wednesday and three days of official mourning have been called in memory of Andalucía’s fifteenth victim of domestic violence this year.

Blanco faces charges of influence peddling and bribery

Ex Minister for Development, José Blanco - EFE

The Supreme Court has opened a criminal process against the ex Development Minister, José Blanco, in the so-called Campeón Case.

Blanco faces charges of influence peddling and bribery in the case which comes out from the investigations judge, Estela San José, from Instruction Court 3 in Lugo, who presented her report to the prosecutor at the end of November, suggesting the case be continued. Several businessmen have accused the ex Minister of carrying out efforts in their favour in exchange for money.

The instructing judge in the Supreme Court will be the magistrate, José Ramón Soriano.

The highest judicial authority is Juan José Martín Casallo, following the Attorney General, Cándido Conde-Pumpido, excusing himself from the case given his friendship with Blanco.

Blanco commented on Wednesday night, ‘I have the security that the investigation is going to clarify the false accusations’.

Spanish Royal Family pose for the press at the Marivent Palace

The Spanish Royal Family on the steps of the Marivent Palace in Mallorca today - Photo Ballesteros/EFE

This year the traditional summer photo has a new arrival - the Infanta Sofía

In what some people consider to be the most awaited photographic moment of the year, the complete Spanish Royal Family has posed for their traditional summer photograph.

As usual it took place at the Marivent Palace on Mallorca, the traditional summer holiday destination for the royals.

This year there is a new arrival in the family group, the Infanta Sofía who was born to the Princess of Asturias, Letizia Ortiz, on April 29th this year, and who has become third in line to the throne.

Iñaki Urdangarin has been indicted

The Duke of Palma will appear in court on February 6

Iñaki Urdangarin - Photo EFE

Iñaki Urdangarin, the Duke of Palma and son in law of King Juan Carlos has now been indicted and called to declare to the court in Palma de Mallorca on February 6.

Judge José Castro is investigating him for alleged crimes of misuse of public funds, fraud, falsehood and perversion of the course of justice. He will have to ‘explain the final destination of the public funds received in Valencia and the Baleares and the fiscal treatment of the same’. The judge is also set to ask him whether there are any profits from the money received.

The case is a separate part of the Palma Arena case against the ex President of the Baleares, Jaume Matas and has been named by the police as ‘Operación Babel’.

The case summary, which includes part of his business interests in the Nóos Institute has now been published. It contains more than 2,000 sheets of investigations and indicates possible criminal activity linked to what should have been a non-profit organisation of which the Duke was President.

A statement from the Zarzuela Palace has said they ‘respect the actions of the judges’.

Corrupt judge allowed back into the judicary

Francisco Javier de Urquía has been found guilty of accepting bribes

Francisco Javier de Urquía - Photo EFE

The Supreme Court has decided to rehabilitate the Judge, Francisco Javier de Urquía, despite him being found guilty on two occasions of accepting bribes when he was the judge in the Instruction Court 2 in Marbella.

The High Court of Justice in Andalucía considered the judge had accepted 73,800 € from the man at the centre of the Malaya case, Juan Antonio Roca. The money reportedly helped him to by a property in exchange for judicial favours. A few days after the payment of the money, he blocked a Marbella TV station from showing an uncomfortable documentary on Roca.

In the Hidalgo case Urquía picked up 60,000 € for granting bail to three of the accused. He was instructing that case on money laundering of drug trafficking profits.

The Supreme Court has ruled however that having a criminal record does not mean you cannot hand out justice, and that Urquía can return to the judiciary as the 21 month suspension handed down has been served.

It’s the second time the 43 year old judge has got a favourable resolution from the Supreme Court, and where he has a third one still pending. But if a second charge against him becomes firm, then he will be suspended again as a judge.

Employee has his hand chopped off during a robbery in Fuengirola

Surgeons were operating to try and reattach the hand on Tuesday

EFE archive

Police are investigating a savage attack on a member of staff during the course of a robbery in Fuengirola on Monday night, when an Argentinean waiter at a local pizzeria, the Pizzería Miramonte on Calle Fuensanta, had his hand chopped off at the wrist by a knife which was wielded by the robber.

The injured man is named by El Mundo newspaper as A.D.C., aged 29. He received initial medical treatment at the Carlos Haya Hospital in Málaga and was then transferred to the Virgen del Rocío in Sevilla, where surgeons have operated on Tuesday to try and reattach his severed hand.

A 14 hour operation has allowed the hand to be re-implanted, but 48 hours have to pass before doctors know whether the procedure has been a success.

There has been no confirmation as yet of any arrests in the case, or if any cash was stolen from pizzeria.

WRITER who moved to Dorset after falling victim to the property boom in Spain has drawn on his experiences for his first novel.

Christopher Doveton-Gerty, 74, was tempted by the warmer climate of the Costa Del Sol back in 2002 only for his dream to turn into a nightmare.

He has now penned a thriller using his own experiences and others he knew who were lured in by the Spanish property boom.

Mr Doveton-Gerty, who has lived in Weymouth and Poundbury and wrote the book while living in West Stafford, said he took the decision to repatriate to the Moorish town of Mijas following the death of his wife nine years ago.

He said: “When I lost my wife I was living in Bath and didn’t really know what to do and I didn’t want to stay there.

“I saw this big shop window in front of me advertising these wonderful villas in Spain and from there it took off and I bought something.

“I had the experience of it not being finished.

“I had to move somewhere else and had the problem of not being able to occupy the property.

“Eventually the developers and the builders went bust and there are people still out there eight years later who haven’t been able to move into their properties.”

Mr Doveton-Gerty’s book The Spanish Dream tells the story of businessman Peter Grant, who encounters corrupt officials and crooked developers in the Spanish property market.

He said: “I have used and adapted my characters from personal experience.

“I know a lot of doctors, consultants and other very intelligent people who wanted to have a home out there and had these terrible experiences.”

Mr Doveton-Gerty said his mentor for the novel was friend and writer Derek Fox, who is already suggesting a sequel and is hoping to pass the book onto contacts in the film and television industry.:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.

The toast as they sip their sangrias in the sun at the Malaga golf club must be David Cameron and George Osborne

:Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.Winter fuel payments to British expatriates in Europe’s hottest countries have almost doubled in five years.

Pensioners in sun spots including Spain, Cyprus, Portugal, Greece and Gibraltar receive £13.4million a year to help with the cost of heating, compared with £6.9million in 2006.

The payments are vital to the elderly in Britain, where energy bills have reached an all-time high and the cold weather contributes to 26,000 deaths a year.

Handouts: Pensioners who have emigrated to warmer climes for their retirement are still receiving their winter fuel payments. It means that more than £13m a year is being paid abroad

Their counterparts in Spain enjoy mild winters – yet they have still received an astonishing £29.2million over the past five years. This was described as ‘farcical’ yesterday by experts who question whether those living in a hot foreign country deserve help with their heating bills.

The tax-free winter fuel payment, worth up to £300 a year, goes out to all British pensioners whether they live in Cornwall or the Costas, Manchester or Malta.

Struggle: The winter fuel payment, worth £300 a year is paid to all pensioners no matter where they live

Figures uncovered by the Lib Dem peer Lord Oakeshott show that from 2006  to 2011, 270,585 winter fuel payments totalling £52.9million have been made to pensioners in Gibraltar, France, Greece, Italy, Portugal, Spain, Malta and Cyprus. These are the eight hottest countries in the European Economic Area – the EU plus Iceland, Norway and Liechtenstein.

Lord Oakeshott added: ‘It is farcical to be spraying out winter fuel payment cheques all around the Mediterranean.

‘The toast as they sip their sangrias in the sun at the Malaga golf club must be David Cameron and George Osborne.’

Robert Oxley, of the TaxPayers’ Alliance, said: ‘This is an incredible amount of money to be exporting in benefits to the Costa del Sol. It was meant for pensioners struggling with the freezing temperatures back home, not expats enjoying life in the sun.’

A spokesman for the Department of Work and Pensions said: ‘Winter Fuel Payments are paid to UK pensioners abroad in order to comply with European law. They are only paid to pensioners who first qualified for the support while living in the UK.’ 

In another winter fuel anomaly, 500,000 of the richest pensioners in Britain itself are expected to receive the tax-free payment this winter. They still qualify for the money, paid to a total of 13million OAPs, despite being higher-rate taxpayers.

Lord Oakeshott is calling for the handout to be taxed to reduce the clear unfairness of wealthy families being paid a benefit they do not need.

If it were taxed, a parliamentary written answer from the Department for Work and Pensions reveals, it would give a £230million boost to the Exchequer.

Questions: Lord Oakeshott asked how it can be fair that 500,000 of society's richest people were benefiting from the handouts, while Nick Clegg has previously called on better-off pensioners to sacrifice their handouts

Other universal handouts, such as child benefit, are being axed for the better-off. From 2013, child benefit is being withdrawn from higher-rate taxpayers.

Lord Oakeshott said: ‘How can it be right or fair to give a tax-free handout every year to 500,000 of the richest people in society? That money could be far better spent on helping one million young unemployed people find a job, or low-paid families struggling to survive.’

Saga, the over-50s group, is championing a campaign named the Surviving Winter Appeal, saying those who do not rely on the handout to keep warm should donate the money to those who do.

Nick Clegg, the deputy prime minister, said recently that better-off elderly people should make a ‘sacrifice’ to help the Government balance its books.

He said he believed the Government should cut back on the benefits currently given to all pensioners regardless of their wealth. ‘We should be asking millionaire pensioners to perhaps make a little sacrifice on their free TV licence or their free bus passes.’

Spain is clearly a vulnerable area. If that happens, one of the things that will happen in a crash of that kind, is that the banks would close their doors.

EMERGENCY evacuation plans for Brits living in Spain and Portugal are being drawn up amid fears of the euro collapsing.



The drastic proposals emerged as a former Security Minister warned expats could be left stranded and destitute by the break-up of the single currency.

Brits who invested their savings in their adopted countries may not be able to withdraw cash and could even lose their homes if banks call in loans, worried ministers are warning.

The Foreign Office is preparing to bring them back from Spain and Portugal if the two countries are forced out of the euro, triggering a banking collapse.

A million Brits live in Spain and 50,000 in neighbouring Portugal – plus a million in the other eurozone countries.

And Baroness Neville-Jones, who only stepped down as a minister in May, called the situation “very, very worrying”.

The Tory peer – who once chaired the Joint Intelligence Committee for MI5, MI6 and other security agencies – said: “Spain is clearly a vulnerable area. If that happens, one of the things that will happen in a crash of that kind, is that the banks would close their doors. You would find that there are people there, including our own citizens, a lot of them, who couldn’t get money out to live on. So you would have a destitution problem.”

British planes, ships and coaches could be sent to pluck our citizens from debt-ridden Spain and Portugal

Commenting on the evacuation plans, she added: “I think they are right to be doing that. I think this is a real contingency that they need to plan against – very, very worrying.”

Officials are braced for a nightmare scenario where thousands end up penniless and sleeping at airports with no means of getting home. Planes, ships and coaches could be sent, with some expats being brought out through Gibraltar.

The Foreign Office could offer small loans while piling pressure on the banks to give Brits access to their funds.

Spanish and Portuguese banks guarantee the first 100,000 euros deposited by savers but many put limits on withdrawals in a crisis.

A powerful credit rating agency downgraded 10 Spanish banks last week, while another warned over the weekend the debt crisis was threatening to spiral out of control.

Boris Johnson

Top Tory Boris Johnson yesterday became the first senior politician to predict the eurozone will break up.

The bungling London Mayor even joked about Greece being forced out, which would threaten a credit crunch.

“Ouzo will be substantially cheaper,” he told the BBC’s Andrew Marr Show.

He claimed letting the single currency collapse might be the best thing for Europe – but Deputy PM Nick Clegg warned it would end up hurting Britain.

Nick Clegg

The Lib Dem leader said: “I hear a lot of people sort of breezily predicting almost with a sense of glee that the eurozone is going to fall apart. I don’t think witnessing the break-up of the currency block in our European backyard would do us any good at all.”

Expat Doreen Peplow keeps most of her money in a British bank account

Doreen Peplow, 68, who lives between Marbella and Fuengirola, says: “I am worldly wise enough to have made sure I have kept most of my money in my British bank account.

“Until now I have been getting my pension paid directly into a Spanish account. I might change that now.

“I cannot imagine there will be an evacuation; people retired to Spain and Portugal before Britain entered the Common Market and they managed.

“I have lived here 15 years. I don’t want to go back to Britain as the weather is dismal and it is overcrowded.

“But if it comes to it I am prepared to sell up and buy myself a retirement property near my son in Dorset.”

DOG lovers in Estepona have been left horrified after a YouTube video showed a police van dragging a dog by its lead.

The Andalucia animal charity CACMA has now filed an official complaint against the officers involved and Estepona Mayor Jose Maria Urbano is said to be taking it ‘very seriously’.

It comes after the incident was filmed by a concerned resident on his camera phone and posted to YouTube where it has been widely viewed.

The disturbing video clearly shows the animal being pulled along the middle of the road while the van drives off.

“We were shocked and horrified to see how police dealt with this dog,” said Mary Page, Vice-President of local animal charity ADANA. “We hope that the incident will be thoroughly investigated.”

Tax authorities in Spain are understood to have begun investigating whether hoteliers in the country are paying the right level of VAT

Tax authorities in Spain are understood to have begun investigating whether hoteliers in the country are paying the right level of VAT following the MedHotels case in the UK.

The UK tax office failed to convince a High Court judge this summer that bed bank MedHotels was liable to pay £7 million in VAT on its margin for the period 2004-07. However, the case exposed a tax gap in the sector.

Travel Weekly understands Her Majesty's Revenue and Customs (HMRC) officials in the UK have been "agitating" their Spanish counterparts to ensure that, if the tax cannot be collected here, it is at least paid locally.

A well-placed source said he was aware of a number of hotels which had been approached. "If this is not the bed banks' problem then it's got to be someone else's - whether that is fair or not is not for me to comment on," he said.

It had been assumed the Spanish tax authorities would not pursue hotels in the country for the tax, for fear of undermining so an important sector of the economy expecially in the current climate.

But the source said: "Spain has had not had a bad year for tourism and the country is broke, so this is one way for the government to raise some revenue."

The MedHotels case prompted HMRC to write to at least 10 other firms operating in a similar way, suggesting they too were liable for VAT under the Tour Operators Margin Scheme.

HMRC has not dropped these cases, although its pursuit of the VAT was dealt a severe blow on appeal at an Upper Tier tax tribunal which ruled MedHotels' paperwork and agreements with hoteliers meant it had been acting as an agent and was therefore not liable.

For the bed bank sector it is preferable tax on hotel beds is paid at the lower rate in Spain, where EVA - the Spanish equivalent of VAT - can be as low as 6% in some regions, compared with the 20% rate levied in the UK.

On Holiday Group chief executive Steve Endacott said: "This is another example of the British government not knowing how the market works. We are plagued by a bureaucratic and slow response from HMRC on all tax issues.

Cameron had made "unacceptable" demands for exemptions for the UK over financial services.

David Cameron has effectively vetoed an EU-wide treaty change to tackle the eurozone crisis, saying it was not in the UK's interests.

Instead a new "accord" setting out tougher budget rules will be drawn up for the eurozone and at least six other EU states which intend to join it.

France's Nicolas Sarkozy said the UK PM had made "unacceptable" demands.

UK Foreign Secretary William Hague denied the move would leave the UK isolated in Europe.

He said signing up to a change to the Lisbon Treaty - the treaty which governs the running of the EU - would have meant giving up more national sovereignty.
National budgets

But Labour leader Ed Miliband wrote on Twitter that the outcome was "a sign of weakness from David Cameron": "Why did he fail to build alliances before the summit?"

Nearly 10 hours of overnight talks could not produce an agreement involving all member states, but the 17 eurozone countries and at least six other EU states - who are expected to join the euro in the future - are expected to sign up to the new deal, which includes:
Continue reading the main story

a commitment to "balanced budgets" for eurozone countries- defined as a structural deficit no greater than 0.5% of gross domestic product - to be written into national constitutions
automatic sanctions for any eurozone country whose deficit exceeds 3% of GDP
a requirement to submit their national budgets to the European Commission, which will have the power to request that they be revised

French President Nicolas Sarkozy said Mr Cameron had made "unacceptable" demands for exemptions for the UK over financial services.

The UK has long resisted calls from other EU leaders for a Europe-wide tax on financial transactions - a so-called Tobin tax - which it argues would hit the City of London disproportionately.

Cameron had made "unacceptable" demands for exemptions for the UK over financial services.

David Cameron has effectively vetoed an EU-wide treaty change to tackle the eurozone crisis, saying it was not in the UK's interests.

Instead a new "accord" setting out tougher budget rules will be drawn up for the eurozone and at least six other EU states which intend to join it.

France's Nicolas Sarkozy said the UK PM had made "unacceptable" demands.

UK Foreign Secretary William Hague denied the move would leave the UK isolated in Europe.

He said signing up to a change to the Lisbon Treaty - the treaty which governs the running of the EU - would have meant giving up more national sovereignty.
National budgets

But Labour leader Ed Miliband wrote on Twitter that the outcome was "a sign of weakness from David Cameron": "Why did he fail to build alliances before the summit?"

Nearly 10 hours of overnight talks could not produce an agreement involving all member states, but the 17 eurozone countries and at least six other EU states - who are expected to join the euro in the future - are expected to sign up to the new deal, which includes:
Continue reading the main story

a commitment to "balanced budgets" for eurozone countries- defined as a structural deficit no greater than 0.5% of gross domestic product - to be written into national constitutions
automatic sanctions for any eurozone country whose deficit exceeds 3% of GDP
a requirement to submit their national budgets to the European Commission, which will have the power to request that they be revised

French President Nicolas Sarkozy said Mr Cameron had made "unacceptable" demands for exemptions for the UK over financial services.

The UK has long resisted calls from other EU leaders for a Europe-wide tax on financial transactions - a so-called Tobin tax - which it argues would hit the City of London disproportionately.

Yard detectives investigating Maddie disappearance travel to Spain and Portugal

 

SCOTLAND Yard detectives investigating the disappearance of Madeleine McCann have flown to Spain and Portugal, it emerged yesterday. Three officers met colleagues in Barcelona last month. It is believed the visit was linked to reports Maddie may have been smuggled into the country after being snatched just before her fourth birthday on a holiday in Portugal in 2007. Advertisement >> Investigators hired by parents Gerry and Kate earlier uncovered a child porn ring in the city. A Met Police spokesman said there had been “good co-operation” between the forces. Scotland Yard was called in to review the case earlier this year following a request by PM David Cameron. The McCanns praised cops and added in a statement: “We are pleased that the review is making progress.”

Rich Egyptians weigh emigration as Islamists surge

 

For decades, Egypt's Westernised elite kept the country's growing religosity at arm's length, but a projected Islamist surge in the first post-revolution polls has driven many to think of moving abroad. Sporting the latest fashions and mingling in upmarket country clubs, Egypt's rich fear a victory for the Muslim Brotherhood and hardline Salafis in the first phase of parliamentary elections presages change ahead. "I hope they don't impose the veil and ban women from driving like in Saudi Arabia," said coquettish fifty-something Naglaa Fahmi from her gym in the leafy neighbourhood of Zamalek. In a nearby luxury hotel, Nardine -- one of Egypt's eight million Coptic Christians who are alarmed by the prospect of a new Islamist-dominated parliament -- is pondering a move aroad. "My father is seriously thinking about sending me and my brothers elsewhere because he thinks we won't have a future in the country with the Salafis," said the banker in her twenties. Ten months after a popular uprising ended the 30-year autocratic rule of Hosni Mubarak, millions of Egyptians embraced their new democratic freedoms earlier this week at the start of multi-stage parliamentary elections. The preliminary results to be published on Friday were expected to show the moderate Muslim Brotherhood as the dominant force, but with a surprisingly strong showing from the hardline Al-Nur party. Its leaders advocate the fundamentalist brand of Salafi Islam, rejecting Western culture and favouring strict segregation of the sexes and the veiling of women. They say they have been the victims of Islamophobia and sustained fear-mongering by liberals in the Egyptian media. Nevertheless, the fear that they will try to impose their values on the rest of society has driven Angie to consider leaving her comfortable Cairo life behind. "My husband recently got a job offer in Dubai. In the beginning I was hesitant, but now, with all that's happening, I'm encouraging him to take the job and I'll join him with our daughter," she said. "The Gulf has become more liberal than Egypt," she told AFP. For Ahmed Gabri, having the Islamists in power means having his freedoms restricted. "I will leave the country," said Gabri, a Muslim. "I will not stand living in a puritanical climate. Why don't they just let people live the way they want?" The next parliament will be charged with writing a new constitution and the idea of an Islamist-dominated assembly has sent shockwaves through some segments of society. Many stress the difference, however, between the different Islamist groups. "They don't scare me. We have democracy now which means we'll be able to remove them if they don't suit us," said Manar, a tall blonde in her 40s. "It's the not the Muslim Brotherhood that worries me because they want to appear in the best light, it's the Salafis that I'm concerned about," she said. Iman Ragab, a shop assistant, has resigned herself to the election's likely outcome. "This is democracy, you have to accept the results of the ballot," she said.

Royal Navy comes to the aid of Spanish trawler under pirate attack

 

The British Royal Navy has arrested seven suspected pirates after helping a Spanish fishing vessel which was being attacked in the Indian Ocean. The British Ministry for Defence said the Royal Auxiliary Fleet Ship Fort Victoria, carrying Royal Marines, carried out the rescue on the 28th of November between Somalia and the Seychelles. The RFA Fort Victoria is a stores ship with is designed to carry ammunition, food and explosives to replenish naval vessels at sea. The vessel’s navy helicopter fired shots at two suspected pirate vessels which were then searched by the marines. They pirates were taken to the Seychelles where the suspects will stand trial.

Málaga port's new attraction closed after seven hours

 

The new Muelle Uno has been closed as building works are continuingThe Muelle Uno development - EFE After much fanfare about the opening of Málaga port to the city, and the opening of the Muelle Uno on Tuesday, the Málaga City Hall decided to order the closure of the new street just seven hours after it opened to the public. A public statement was sent out which said that, for reasons of safety, and because the building work was still continuing, they were ordering the street to be closed and called on the tender owner to close the shops. Just five hours earlier the Mayor of Málaga, Francisco de la Torre, and several councillors went to the reception prior to the inauguration of the new attraction in the Marina de la Farola. The owner of the concession was reported to be considering what to do on Tuesday night, and whether to remain trading anyway, but that decision has been overruled by the guards placed on Wednesday at the entrance to the zone, stopping the public from gaining access. The City Hall has made a new statement saying the area will not open until all the building works are fully completed.

Three tons of cannabis seized from Alicante drugs yacht

 

The haul has a street value of more than 5 million €A previous haul of cannabis resin .. Three tons of cannabis have been seized and four suspects have been arrested in a joint operation by the Customs Authority and National Police which took place off the coast off Alicante on Tuesday morning. The operation was on the high seas some 70 miles off shore, where a Customs patrol boat intercepted a yacht which was visibly sailing low in the water and was later found to be carrying 100 bales of cannabis. Diario Información puts its street value at more than 5 million €. The three crew were arrested and a fourth man was taken into custody on shore. It’s understood that three are Spanish and the fourth is a foreign national who has lived in Spain for some years. The operation remains open and further arrests have not been ruled out.

British man dies, strangled in a ponche

 

A 32 year old Briton died on Mallorca around 1730 on Wednesday afternoon in a domestic accident in a property in Cami de Son Choix de Lloret, Lloret de Vistalegre. He was strangled when a poncho he was wearing got caught in a generator which he had just started up. 061 emergency services arrived at the scene and found the man seriously injured, but there was nothing they could do to save his life.

British paedophile arrested in Almería

 

National Police have today arrested a 66 year old British man who is wanted on four charges of rape and on twelve counts of sexually abusing his step-daughter when she was nine to 13 years old, and then later the granddaughter when aged six. The arrest took place in Los Gallardos, Almería, and the man has been named as L. Morris. The search for him started in July 2010 when the granddaughter finally told her both that she had suffered abuse on two occasions, and an arrest order was then issued with the suspect fleeing to Spain. Meanwhile a man wanted in Sweden has been arrested in his home in Málaga province. J.F. Ask, aged 56, is wanted on tax evasion charges and is accused of not paying tax between 2001 and 2005.

Venezuela arrests Colombian drug kingpin

 

The arrest of Maximiliano Bonilla-Orozco at his home in Venezuela's third largest city of Valencia on Sunday was announced, perhaps not coincidentally, during a visit by Colombian President Juan Manuel Santos. After a five-hour meeting at the presidential palace, Santos thanked Venezuelan counterpart Hugo Chavez for the "welcome gift" of capturing "a very high-value" drug trafficker "who has caused terrible damage to our country." Venezuelan Interior Minister Tarek El Aissami said Bonilla-Orozco, 39, would be extradited to the United States, where he was charged with drug trafficking in a 2008 indictment in a New York court. The United States accuses Bonilla-Orozco of trafficking several tons of cocaine from Colombia to the United States, and transporting more than $25 million in drug-related proceeds from the United States to Mexico. "Maximiliano Bonilla-Orozco is the leader of an extensive transnational narcotics exportation and transportation organisation that distributes thousands of kilograms of cocaine from Colombia, through Guatemala, Honduras, and Mexico, to the United States," a US State Department profile says.

Marvel character, Erik Lensherr a.k.a. Magneto, has apparently infringed the copyright of the King of Spain

Marvel character, Erik Lensherr a.k.a. Magneto, has apparently infringed the copyright of the King of Spain in Ultimate Marvel vs Capcom 3, with the Zarzuela Palace claiming the X-Men villain's alternate costume is identical to the military uniform worn by King Juan Carlos.

Representitives for the Zazuela Palace have contacted the Spanish distributor of the game in the region, Koch Media, to warn them of possible copyright infringement.

This isn't the first time the Spanish Royal's has stamped their feet over the strong resemblences, as Marvel faced a similar dispute when Magneto first donned the uniform in The Pulse: House of M Special X-Men special.

eurozone and UK economies lurch towards a renewed recession

eurozone and UK economies lurch towards a renewed recession, the US recovery has surpassed expectations and appears to be firming for now.

The decoupling of the US from Europe is good news for global growth and points to the fact that the two regions have pursued very different fiscal policies over the past year. European nations have been forced to step on the spending brakes to control debt, while the US has been able to delay the switch from stimulus to austerity.

“We have no doubt that the UK is suffering from the severe fiscal austerity the government has put in place and this has contributed to the UK’s weaker economic performance relative to the US,” says Frank Engels, co-head of European economic research at Barclays Capital.

Barclays Capital estimates that these austerity measures have shaved 1,5 percentage points off UK GDP this year and will do so again in 2012 through their indirect impact on household demand and confidence, as well as the direct effect of lower government spending.

More than 100000 UK public servants have lost their jobs in the government’s drive to eliminate the UK’s structural budget deficit by 2015. (The previous government’s commitment was only to halve the deficit over the same period.)

Chancellor of the exchequer George Osborne’s argument is that the situation would have been worse if it hadn’t enacted a credible deficit reduction plan, since this would have risked the UK being dragged into the eurozone’s debt crisis. Instead, UK bond rates are at record lows, meaning the government is not facing higher borrowing costs. This has helped to support the economy at a time when borrowing costs are rising significantly across the eurozone, including the core economies of Spain, Belgium, France and Italy.

For this reason, Osborne is refusing to flinch from his plan, even in the face of worsening UK economic data.

The UK, like the US, benefits from being considered a safe haven fixed income (bond) market and for that reason can continue to borrow at reasonable rates. It is also not part of the eurozone. It could therefore be argued that the UK need not have tightened fiscal policy so aggressively.

“It could probably have got away with doing a bit less,” agrees Barclays Capital chief UK economist Simon Hayes, “but the UK government’s caution is understandable, given how brutal financial markets can be and how quickly they can shift an economy from being in the good bucket to the bad one .”

Eurozone economies clearly didn’t have any alternative. Investors have voted with their feet, driving up yields (hence borrowing costs) in the bond markets of those countries unable to demonstrate the political will to rein in government debt.

Italy is the latest example. Last week nervous investors pushed Italy’s yields back above 7% — the level at which peripheral EU countries sought bail outs. The Italian bond market is the third- biggest in the world, owing bond holders around € 2 trillion. It is simply too big to save.

The risk of a major fallout in Europe is increasing. While European Central Bank president Mario Draghi has said Europe will be heading towards a “mild recession” by year-end, the latest JP Morgan purchasing managers’ index for Europe suggests its problems are worse than the authorities are letting on and that the economy is probably already in an outright decline, says Sanlam Investment Management economist Arthur Kamp.

“It was hoped that reasonable growth would allow countries like Italy and Greece to work their way out of financial distress,” he says . “However, a double-dip recession will simply push up government debt levels.”

On the other hand, Kamp believes the US economy could grow by around 2% this year and hopefully, combined with Chinese economic growth , pull Europe back into positive growth territory.

The US economy has enjoyed a string of positive data releases over the past few weeks, which suggests the economy is on a firmer footing. Part of the reason is that the US has had the luxury of time to get a handle on its $15trillion debt mountain.

Thanks to the US having the world’s largest government debt (bond) market as well as the global reserve currency, not even the loss of its AAA credit rating in August had any material effect on US borrowing costs. The upshot is that the US has been able to delay any serious fiscal adjustment for at least another year.

In addition to the $775bn stimulus plan enacted in 2009, US president Barack Obama recently put forward a $447bn jobs plan. Though this additional stimulus has been rejected by the Senate, Obama still hopes to push it through in a piecemeal fashion.

The disbanding of the so-called debt “super committee” seems ominous but its work was about deciding where cuts would come from, not the extent of cuts. These will now be triggered automatically in line with Obama’s budget deal with the Republican party. This will wipe up to $2,4trillion off government spending over the next 10 years but these savings are heavily back-loaded towards the outer years in order to prevent depressing short-term growth.

The term being given to this juggling act of supporting short-term growth while promising long-term savings is “growth- friendly fiscal consolidation”. Over the course of the past year it has become the new consensus in developed economies.

SA’s approach is very much in line with this shift in global thinking. “Whereas over the past few months there was strong support for fiscal austerity, that has changed,” finance minister Pravin Gordhan told the FM recently. “There is now a much more nuanced approach which says: focus on growth and jobs in the short term because a focus on fiscal austerity won’t produce the goods.”

The problem is that you can’t solve debt with more debt indefinitely. Europe’s condition shows what happens when an economy eventually does apply the austerity brake . If this is what the US will look like from 2013 , then the future is indeed grim.

500 vehicles per year are abandoned at car repair shops

500 vehicles per year are abandoned at car repair shops in Almeria province.

The owners leave them for repair and then abandon them when they are unable to pay the bills.

Mechanics say that this has always happened, but more so in the past few years, and in 2009, almost 1,000 vehicles were abandoned at garages in the province.

They report losses that year alone of more than €2m because of what the unpaid repairs cost them.

However, the following year, a law came into effect by which, if they notify the traffic department and the car is not collected and paid for within a month, they can call for it to be taken for scrap, meaning they can take back any pieces used for the repair which helps to reduce costs, although there is no way for them to get back the time they have spent on the vehicle.
In most cases, when vehicles have been abandoned, the cost of the repairs was quoted at around €1,000 and the vehicle is between eight and 10 years old.

Spain must help herself

Following the pressure on the Spanish debt on Thursday, the Spanish Prime Minister, José Luis Rodríguez Zapatero, called for more help from the European Central Bank to buy Spanish bonds. But today Brussels has responded by saying, ‘Spain must help herself’.

The community economic spokesman said ‘We’ve been saying this for some time’, although he added that the European institutions are already doing what is needed to help countries in danger.

P.P. leader Mariano Rajoy has made a call to the markets for a margin for his new government. ‘I hope this stops and they realize that there are elections’, he said, adding that Spain is a ‘serious and trustworthy country’ which has always paid its debt, but he blamed the Socialists for the situation, ‘These people have left us broke’, he said.

Meanwhile the risk premium, the difference paid between German and Spanish ten year bonds, has fallen today to 450 points after opening this morning at 502 and being higher than the Italian number for a time.

victim was having sex with her husband at the time she fell.

There has been another case of balconing in Spain, this time in Adeje, Tenerife, and with the twist that the victim was having sex with her husband at the time she fell.

The British tourist who fell several metres then got her ankle caught between the bars of an internal staircase was left hanging there, head down and totally naked until the emergency crews arrived.

49 year old A.M.A.M. had been having sex with her husband against the railings on one of the public areas of the hotel and in the frenzy, the railings gave way. The husband called the emergency services and the local and national police arrived with a fire crew.

After their initial surprise, the managed to release the woman’s trapped right leg, and she was taken for observation to the Hospitén Sur.

Four people from the same family, one of them a six year old boy, have died in a flash flood in Castellón.

 They were washed away in their car in the heavy rain on Sunday when the small river, Rio Seco, in Onda burst its banks. 

The Government Sub-Delegate reports that it happened at about 5,30pm, but the car was not found until just before 7pm. Those to die were trapped inside the vehicle which was covered completely by the water.

The dead were the 42 year old father who was driving the car, his six year old son, his 81 year old father and 78 year old mother. The fire service sent an underwater rescue diving team to the scene.

The Valencia region was hard hit by the rain and flooding, and Valencia airport had to close for a time on Sunday. In Vinarós, Castellón roads were closed as 102.7 litres per square metre fell in five hours.

U.K. tax falls on overseas property investors

 

Overseas property owners based in the UK are about to be targeted by a new HM Revenue & Customs "affluent unit", which has been set up by the British government to address what it sees as tax avoidance by the rich.Photo 20minutos.es What next I wonder?? A new team of 200 taxation investigators and specialists has been established by HMRC to identify wealthy individuals who, amongst other things, own land and property abroad … such as a holiday home. OPP understands that the tax attack unit will concentrate on overseas property assets first, and then switch its attention to UK-based commodity traders (who have been accused of helping to drive up food prices,) before looking into the number of UK residents who hold offshore investment accounts. HMRC says that it will be using sophisticated "data mining" techniques to try and track down people who own overseas properties, but do not pay the right amount of tax. This might include someone who owns a villa in Spain which they are renting out, or an individual who owns a piece of land in France that is being used as business premises, said an HMRC spokesman. The experts will be looking for people who do not seem to be declaring the correct income and gains. The new unit, which has been announced by the UK’s Chief Secretary to the Treasury, Danny Alexander, will focus solely on people paying the 50% top tax rate. David Gauke, the exchequer secretary to the Treasury, said there would be "no hiding place" for tax cheats, adding that the UK government “is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years. This new team is part of that investment." Ronnie Ludwig, tax partner at accountancy group Saffery Champness told OPP that “those who have been letting out their foreign property and declaring the rents received have nothing to fear, but those who own foreign property which has never been let out should be prepared to prove to HMRC that they have received no income from the property.” “This will involve producing UK and foreign bank statements and being able to demonstrate that they could afford to purchase and maintain the property out of normal declared sources."

Toxic Smoke fills Hotel Senator in Marbella

 

On Friday the 18th November 2011 our family with a 3 year old toddler and a 15 month old baby checked into the SENATOR Hotel in Marbella for a one night stay. We knew that the Hotel SENATOR had only recently opened and indeed everything seemed brand new and glitzy. After the usual check in fomalities we finally got to our room on the 4th floor which was OK in every respect other than perhaps being a little on the small side. After returning from dinner we immediately went to sleep as we were very tired. At probably between 3 and 4 am I woke up and I thought there was a bad smell in the room. At first I gave it no further attention and went back to sleep only to wake up again and now identifying the smell you get when you turn on an electric heater that has gathered dust. Both my wife and children were completely asleep. As the smell got worse and now clearly was no longer a smell but serious toxic smoke that started to fill the room I woke my wife and she immediately realised that this was smoke from a fire. Then our baby started to cough very badly. I immediately opened our balcony door and to my amazement saw three fire engines and at least three police cars on the front side of the building with firemen entering the Hotel. At this moment images of flames coming out from the balconies entered my head. However only smoke could be seen everywhere. We immediately put on some clothes grabbed essentials and run out of the room only to find that in the hallway smoke was pouring from what seemed to be a fire sprinkler. Another couple opened the safety exit door to the escape staircase and there we found that the smoke was much less apparent. So we went down into the reception which was smoke filled and out into the road. Heavy smoke came out from a basement access into the road. Another guest told us that apparently the fire had started in the newly opened Sauna. By now more guests had decided to leave the hotel for the safety of the street and we were all huddling about in the cold expecting some news about what was going to happen to us. The manager of the Hotel could be seen on top of the Hotel stairs smoking a cigarette. Eventually we requested some explanation and information about the situation as obviously everybody was tired and did not want to remain in the street for ever. The Manager almost casually said that the fire had been put out and that everybody could go back to the rooms as it was now only a simple matter of getting rid of the smoke which he estimated would take about an hour. I made it clear to the manager that both our 3 year old toddler and our baby could not go back into a room where smoke would still be present for at least an hour. He agreed but provided no alternative. So I asked him whether it was safe to retrieve our car from the garage which he said it was and we left. The following questions need answering both by SENATOR Hotels Group and by the local authorities: 1. Why was there no alarm? We might not have woken up perhaps never because as is well known most people do not die from fire but from the toxic smoke it produces. My wife and my children in particular our baby and 3 year old were fast asleep in our smoke filled room. The fact that there was no alarm which was queried by other guests surely implies that either there was a serious breach of procedure or an inadequate safety system in the Hotel. Fire and smoke procedures are subject to extremely serious inspections by the local authorities in all countries. In fact a hotel normally cannot open or will be closed down if any of these procedures are inadequate, faulty or non existent. 2. There were communications over loudspeakers outside the hotel. We could not hear the words spoken on the 4th floor and it seemed that this was more of communications between the police and the firemen. Apart from that we assume that the communications were in spanish and therefore could not be understood by the foreign guests in any case. There seemed to be no call to evacuate the hotel as some guests were still waving from their hotel balconies. 3. That the guests were told to go back ot their rooms even though smoke was still pouring out and would be for at least one hour also indicates a complete lack of understanding of the serious health risks of smoke particularly to children. 4. Nobody gave any explanations or assistance to the guests which included many children. We were all required to stand in the cold of the street for over one hour. You would have thought that a Hotel would have a program in force for such an event including a reciprocal arrangement with another close by hotel for the guests to be able to wait in the reception and be able to use the toilets and get some refreshments in particular for the children. 5. To clear the dining room of thick smoke an industrial fan was brought to the door to literally blow the smoke out of the windows. 6. The penultimate safety question must be: why would a fire in the sauna of the wellness centre of the SENATOR Hotel produce smoke that pours out of every ventilation and airconditioning outlet right up to the top of the hotel? 7. The ultimate safety question must be: why does the SENATOR Hotel in Marbella have no smoke alarms? We are concerned about the possible longterm effects on the health of our children. When cleaning our noses we were worried to notice that our tissues were black. How much of this has gone into our baby's and toddler's lungs? What is the toxic composition of this smoke? We are waiting to hear from the SENATOR Hotel group as to compensation for our nightmare and what they will do to prevent this ever from happening again.

The Government blames the judges for the Málaga drugs theft

 

300 kilos of cocaine was taken from a warehouse in Málaga portPhoto EFE Government sub-delegate for Málaga, Hilario Lopez Luna, has blamed the judges for the theft of 300 kilos of embargoed cocaine from a warehouse in Málaga port. He said that despite requests being made for authorisation to destroy the drugs, that permission had not arrived from the judges, and that was why there was so much drugs being stored. He said that the drugs taken had already been analysed and the judges have samples so no ongoing investigation would be affected. López Luna denied knowing about the security problems at the warehouse, saying he had never received any information on the subject from the Guardia Civil or anyone else. He said the warehouse was manned weekdays between 7am and 3pm by a private security firm, and for the rest of the time the Guardia Civil had the key. The thieves broke into the warehouse on Saturday night last weekend. His comments have been criticised by the judiciary. ’You can’t move the responsibility now from the administration to the judiciary’ said the President of the Andalucia High Court of Justice, Lorenzo del Rio. The judge noted that ‘the law obliges the immediate destruction of seized drugs’, after samples are taken. ‘Until they can show me documents showing that the destruction of the drugs was pending permission, I will think that it was already authorised’, he said.

20 arrested for sexual exploitation of women

 

The case started with the arrest of a mother in Vélez-Málaga who obliged her children to prostitute themselvesTwo groups which dedicated their time to the sexual abuse and exploitation of women have been broken up by Spanish police. The case resulted from a police investigation in Vélez-Málaga into two children who were obliged to prostitute themselves by their mother. A total of 20 arrests have been made in Málaga, Girona and Madrid, including two thought to be the heads of the operation who were arrested in Figueres, Girona. The groups operated in clubs and private homes and the women were forced to work round the clock and consumer large amounts of alcohol and drugs. They would often be beaten if they refused any request. Six people have been charged for crimes linked to prostitution and corruption of minors, while the rest face charges of prostitution and acting against the rights of workers.

British woman falls off hotel balcony when having sex

 

There has been another case of balconing in Spain, this time in Adeje, Tenerife, and with the twist that the victim was having sex with her husband at the time she fell. The British tourist who fell several metres then got her ankle caught between the bars of an internal staircase was left hanging there, head down and totally naked until the emergency crews arrived. 49 year old A.M.A.M. had been having sex with her husband against the railings on one of the public areas of the hotel and in the frenzy, the railings gave way. The husband called the emergency services and the local and national police arrived with a fire crew. After their initial surprise, the managed to release the woman’s trapped right leg, and she was taken for observation to the Hospitén Sur.

traders bet that Spain would follow Italy into bail-out territory.

traders bet that Spain would follow Italy into "bail-out territory." French bank Societe Generale said: "Spain is now joining Italy on the radar screen". Warren Buffett, the US investor, said bond markets were displaying a "partial run on Europe." British borrowing costs fell to just 2.2pc.

Michel Barnier, the EU markets commissioner, said he wanted to ban credit rating agencies from rating bonds from bailed-out countries. He told French radio that the agencies could lose the "right to rate certain countries for a certain time that are receiving an international support programme from the IMF or European Union." But few could see how the ban could be imposed.

In Athens, a debate over Lucas Papademos' leadership starts in the Greek parliament today. The new premier has to win a confidence vote tomorrow and then prepare next year's draft budget to take to his first showdown with eurozone finance ministers in Brussels on Thursday.

Antonis Samaras, leader of the Greek opposition, warned that he would not support Mr Papademos' interim government for more than three months without elections. His objections are said to be barring the disbursement of the €8bn tranche of international aid to Greece.

The King of Spain’s son-in-law was at the centre of a corruption storm today as he came under investigation for siphoning off public money.

Inaki Urdangarin - the husband of King Juan Carlos and Queen Sofia's youngest daughter Infanta Cristina - is suspected of misappropriating cash paid into an NGO.

The former handball player now faces a possible interrogation by investigating judge Jose Castro  and risks causing huge embarrassment for the royals.

It is claimed that his non-profit company, Instituto Noos, was given an enormous 2.3million euros (just under £2million) by the Balearic Islands’ regional government to organise two conferences on tourism and sport in 2005 and 2006. 

The judicial investigation is looking into whether the bills for the events were inflated and if the money ended up in private companies run by Urdangarin, who is Duke of Palma, the capital of Majorca.

Urdangarin, 43, left Instituto Noos in 2006, months after the exorbitant sums paid by the Balearic government were revealed by the Socialist Party.

 

 

He said today: 'I cannot comment about on-going judicial proceedings.'

The prosecution claims Urdangarin and his associate Diego Torres created a network of societies with which they diverted public and private funds received by Instituto Noos.

Under suspicion: The former handball star is charged with creating a network of societies into which he diverted private and public funds

Regal scandal: Princess Cristina and Urdangarin (far right) pose with Spain's royal family King Juan Carlos, Queen Sofia, Crown Prince Felipe and wife Princess Letizia and Princess Elena

They are under investigation for document falsification, corruption, fraud and embezzlement, and Torres’s home has been searched.

The Royal Household expressed its 'absolute respect' for the legal decisions and added that it has 'nothing to say at this moment' as this is 'an investigation which must follow its course'.

The Duke and Duchess, who married in 1997, now live in Washington, DC. The couple have four children. 

Urdangarin played in Spain’s national handball team at three Olympic Games, captaining the side for Sydney 2000.

A Romanian man wanted for murder and robbery in Portugal has been arrested in Torre del Mar.

27 year old from Romania escaped to Spain after he was sentenced for the death of a woman who was killed in Portugal in 2005

EFE archive

 


Named by El Mundo newspaper as 27 year old Ioan R., he fled to Spain after a Portuguese court sentenced him to 15 and a half years in prison for the death of a woman in 2005. The victim was smothered to death in her bed during the course of a robbery.

The wanted man was traced to the Axarquía district of Málaga province and was arrested near a bar in Torre del Mar on November 4. He has now been transferred into the custody of the National Court for extradition to Portugal.

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