Spain braces for further cuts amid national uproar

Spain, whose economy – the fourth largest in the eurozone – is staggering under a burden of debt, is preparing for further austerity measures after its finance minister revealed that the 2011 budget deficit was substantially higher than expected. The deficit came to 8.51% of GDP – far higher than the European Commission’s own forecast of 6.5%. Brussels will now effectively dictate the 2012 budget ceiling which Spain will announce on Friday. The country will have to come up with more than 40 billion euros in savings to meet that target. However, most economists say the planned cuts are impossible as the economy is already slipping into recession. Spain has been in the eye of the European debt crisis storm ever since its Socialist government racked up one of the bloc's largest budget deficits. The Socialists were trounced for mishandling the crisis.  As a result, a new conservative government began a four-year term in December. It faced a wave of massive protests when it swiftly introduced tax hikes and spending cuts to the tune of around 15 billion euros. More anger followed when the new prime minister, Mariano Rajoy, introduced a labor decree making it easier for employers to fire workers. His reforms are said to be part of a program aimed at creating jobs: the country has the developed world's highest unemployment rate, at 23%. But the new legislation sparked an outbreak of discontent with hundreds of thousands taking to the streets of Madrid and other major cities.  The unemployment rate for Spaniards aged between 16 and 24 stands at 48.6%, and 39% for those between 20 and 29, according to this month’s government report. There are no official statistics but estimates suggests thousands are emigrating monthly and the country last year saw more people leave Spain than arrive in the country for the first time in a decade. One of the main sources of discontent is bad real-estate debts left over after Spain's housing bubble burst. The debt crisis led to a crash in Spanish real estate with thousands of new houses standing empty, resulting in a rash of so-called ghost-towns country-wide. Spaniards now accuse the government of enormous waste which left them without houses, work or money. “When the crisis started, the real estate bubble burst, and of course companies started going bankrupt. Public administrations started not receiving incomes they were accustomed to and the whole economy blew up,” Prof. Manuel Balmaseda, an economist from the ICAI School of Engineering, told RT. The property crash continues to hit people hard, but a nationwide movement is now fighting back. Banks prefer to repossess the homes of those who cannot afford the mortgages taken out when the outlook was more positive. Among the worst affected are Spanish youngsters and immigrants. The situation has sparked regular protests against banks, the government and the austerity cuts which are widely seen as provoking a further slowdown of the economy, which is set to shrink this year by 1.7%.

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The economic disaster that heavily indebted Spain has found itself in is clearly a consequence of Spain joining the euro

 

The economic disaster that heavily indebted Spain has found itself in is clearly a consequence of Spain joining the euro, insists economist Dr. Manuel Balmaseda. When Spain joined the euro, the EU Central Bank settled overly low interest rates, resulting in Spain receiving “enormous amounts of credit which increased Spanish indebtedness, particularly foreign”. Cheap money created financial bubbles, for instance in real estate. When the 2008 economic crisis came, the bubbles burst, many companies went bankrupt and the whole overheated economy blew up, explains the professor. Madrid now needs more flexibility to curb deficit as the EU introduces new rules on budget discipline. Spain appears to have become the first country to test them. Madrid is desperately trying to negotiate a higher 2012 fiscal deficit target than that set by the European Commission. The austerity measures taken by the new conservative government of the eurozone's fourth largest economy will bear no fruit, believes Dr. Balmaseda, “because the problem is in the euro.” “There are great expectations that a new government is going to arrange the problem,” the professor says, stressing that the honeymoon of the Spaniards with the new government will not last for more than six to nine months. Dr. Manuel Balmaseda, Professor at the ICAI School of Engineering, is certain that the futures of Spain, Portugal, Greece and Italy lie outside the eurozone. He also believes that the countries remaining in the eurozone will not be very happy without their breakaway partners. Exit from the eurozone would mean a default for Spain, which is unacceptable for French and German banks that hold up to half of Madrid’s €900 billion foreign debt. These banks are interested in returning the money, whatever the cost for Spaniards. The professor believes that leaving the eurozone does not necessarily mean leaving the EU. “Nobody would chase Spain out of the EU,” he says. Dr. Manuel Balmaseda believes that the eurozone crisis is not just caused by governmental overspending. “The origin of the problem is the euro, the lack of competitiveness that the euro brought to Spain”. Spain is following the path of Greece with a two-year delay, believes the professor, because more austerity measures and further cuts of public spending are only pushing countries like Greece and Spain deeper into recession.

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Bailed Kyle Thain and James Harris return from Spain

 

Two men from Essex accused of attempted murder in Spain have returned to England. Kyle Thain, 24, and James Harris, 29, had been in Spain for the past seven months after being accused of attacking two men in an Alicante bar in July 2011. The pair, both from Southend, were held in a Spanish prison for four months without charge. They have now been allowed to return to England on strict bail conditions. Mr Harris returned to the UK on Tuesday and his friend Mr Thain arrived at Stansted Airport on Wednesday evening. New lawyer As part of the conditions of their return to the UK, both men must sign in at the Spanish consulate in London twice a month. Speaking before her son Mr Thain's arrival, Sharon Harris, said: "I am so excited and nervous at the same time. "I still can't believe it. I won't be happy until I've got my arms around him at the airport." Both men have protested their innocence and have said they can prove they were elsewhere at the time of the attack. They were released from jail in November and given their passports back after each paid £6,000 in bail, but were told they could not leave the country. A new lawyer has now negotiated their return home. Pablo Sebastian, a Spanish lawyer working in Alicante with offices in Hadleigh in Essex, has been helping the boys' families secure their release. "We are very relieved to have them home," he said. "It is an improvement because they are back with their friends, family and at their jobs." 'Lives disrupted' Mr Sebastian said the men's "impeccable behaviour" while on bail in Spain had persuaded the Spanish judge to allow them back to the UK. It is thought the men's families have paid about £25,000 to cover travel, accommodation and legal costs since the pair were arrested. The men must now wait to hear if they must return to Spain for a trial. Richard Howitt, MEP for the East of England, is now calling for a change in European law to ensure minimum standards of justice across all member states. "The idea they have been several months in prison, outside the country and suffered such a huge financial loss is unacceptable," he said. "If we had a system whereby you respect and uphold each other's system of justice, then Kyle and James could have come home seven months ago. "But their lives have been totally disrupted, as have their families', which is why we need better standards of judicial co-operation at European level."

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Mercadona Rocked As Own Label Linked To Canine Deaths

 

Mercadona is in the middle of a public relations disaster after its ‘Compy’ own label dog food brand was linked to the deaths of several pets across Spain, after having caused kidney failure in the animals. . The deaths were initially recorded by pet owners in Andalucia, Murcia and Alicante, but new reports have claimed that similar cases have been found along the Costa del Sol. Several pet owners insisted that the deaths were caused after their pets ate the own label product, and following intense pressure, Mercadona has removed two variants of the ‘Compy’ range from select stores. The chain said it is now studying whether there indeed is a connection between the product and the deaths. It would not comment on whether the problem was caused by a recent shift in packaging of the product from tins to cartons. Mercadona added: “At this stage we have only removed the product as a precaution and we are waiting for the results of the analysis. We do not know with any certainty if the food is to blame”.

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Spanish government will try and secure the 'gold on the Rock'

 

With the Odyssey gold back in Spain, the Spanish keep referring to more gold that remained in Gibraltar. It is being reported in Spain that the Spanish government will try and secure the 'gold on the Rock' through what they term a European order. They say that although Gibraltar likes to play a dual role, it is in fact part of the UK and thus Madrid is knocking on the UK's door to get them to urge Gibraltar to hand over the gold. Bilateral talks are said to be taking place. It is said that there are 59 artefacts still in Gibraltar, apparently stored by Odyssey. A Spanish heritage official was critical of the way the Oddysey gold left for the USA via Gibraltar,which is a joint sovereignty airport, adding that it was far from being dignified. This happened in 2007, a year after the signing of the Cordoba Agreement. The British Embassy in Madrid has confirmed that it is in touch with the Spanish foeign ministry, saying it was not clear if part of the consignment was in Gibraltar. Two military planes laden with 17 tons of silver and gold coins from a Spanish warship that sank during a 1804 gunbattle with the British is now back in Spain. It followed a 5-year legal battle between the Spanish and the American Odyssey company. On Thursday the Peruvian government made an emergency appeal to the U.S. Supreme Court seeking to block transfer of the treasure to give it more time to lodge its claim as the rightful owner of the gold. Peru says the gold and silver was mined, refined and minted in that country, which at the time was part of the Spanish empire. But the appeal obviously arrived too late, as the gold was flown to Madrid by the two Spanish military aircraft.

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Tarragona village wants to grow marihuana to get out of the recession

 

village in Tarragona has come up with a way to beat the recession. They propose to plant marihuana. A smokers’ club in the village of Rasquera and say the plantation would create jobs. They say they will not sell it, rather it will be for the use of the club members and also for ‘therapeutic ends’. A cannabis association in Barcelona that uses the drug for therapeutic reasons has offered to pay 36,000 € to the club and sign a deal with the Town Hall, and then promises to pay 550,000 € a year each July for the land rental, legal and judicial costs, and security which make up the project, noting the Town Hall won’t have to pay a penny. For now the local Town Hall is to hold a meeting and vote on Wednesday to decide on what to do; they have requested a report to see if the idea is legal or not. The Mayor of Rasquera, Bernat Pellisa, told the EFE news agency that they are studying the proposal which he said was ‘developed and an opportunity, and certainly not frivolous’. There are about 1,000 inhabitants in the village, and while they admit they could never have imagined it, the crisis is such they say they are prepared to grow whatever is needed.

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Renounce your British Citizenship?

Britain ignores its citizens who live abroad. James Preston, a businessman in Spain angrily declares he will renounce his British citizenship. Yet he feels sick at feeling forced to do so. Why does he do it? He is denied representation at Westminster (the vote!) because he has lived outside of Britain for more than 15 years. He has fought before the High Court his demand to be represented as a Citizen in the British seat of power – the Parliament at Westminster. His case and his appeal have been rejected. James Preston resents having the door slammed in his face. Britain denies him the basic democratic right of representation. He writes “We have concluded, therefore, that the contract between the State and my wife and I – the citizens – has been broken. We moved to Spain, an EU country, to represent British interests and find work, and not continue to claim unemployment benefit.” James Preston in his despair, intends to renounce his British citizenship and take out Spanish citizenship. Britain, in this, acts as a dictator State which regards the citizen abroad as ‘subjects’ and not as free people with democratic rights. The Government of Britain will not listen to the citizens abroad but still expects their obedience to the laws of Britain. These are strong words but are they not true? James Preston, is undoubtedly proud of his British (English) Ancestry which he can trace back for over 400 years. He left Britain in 1995. He was then unemployed but found work with a British company in Madrid, and has worked for British companies ever since. He stills considers his soul is British, but in Spain you cannot hold dual citizenship. Because Britain will not grant him representation in Parliament he therefore feels that he has no alternative but to turn his back on Britain. But still the clammy mechanical claw of British bureaucracy might well hold claim on his estate at his death. British Tax Law could still claim to his dying day that he is ‘domiciled in Britain’, because it says he will retain his British domicile of birth! You may think this outrageous and you are right to think so. It is difficult to cut yourself loose from the British State if you are born British. The fact that his children are educated in Britain, and extraordinarily, the very fact that he has taken a case before the High Court in London to claim the right to vote displays in the eyes of the Revenue his ‘attachment’ to Britain. It is incredible but true that for these reasons the estate he leaves could well be subject to taxation by the British State, even though he would die a Spanish citizen. Mr. Preston also tells me that his children do not have full British Citizenship but are considered as 'Spanish of British descent' because they were born in Spain. If they had been born in the UK they would be fully British. If they then marry British spouses and have children born outside of Britain, his grandchildren would not be British citizens at all. But if they were born in the UK they would be British. It is a crazy stupid mixed up world. It is the last straw that, after having been insultingly refused the right to Representation, Britain could still claim a pound (£) of ‘flesh’. It beggars belief that Britain, claiming to lead the world in Democracy so treats its own citizens who dare to live abroad. It cannot desire, can it, that every British Citizen living abroad should renounce their citizenship? Should not Britain be proud of us who live abroad? To our neighbours we are the image of Britain. Why are we ignored by our own country? We want to be ambassadors for Britain, but Britain does not want us – except perhaps our money.

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Prison and no bail for Moroccan man who planned to poison tourist complexes in Spain

37 year old Moroccan man who was arrested in La Línea de la Concepción because of alleged links to Al Qaeda has been ordered to prison without bail. Police now believe that Abdellatif Aoulad Chilba, who is married to a Spanish woman, was planning to poison the water in tourist complexes in the area. It has been revealed that a phone call he made to his wife, who lives in Girona, on the 12th of this month, sounded as if it was a goodbye. National Court judge, Fernando Grande-Marlaska, has charged him with belonging to a terrorist organisation and for conspiracy to carry out a terrorist act. The Moroccan had expressed his wish to carry out such an attack against the ‘infidels’ in several internet forums which were also being used to recruit new members for different Islamic cells. It was on one such forum that he asked for the formula for a mortal venom. One person responded with how to produce a botulism toxin.

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Spain and Morocco to establish joint police stations in Tangiers and Algeciras

 

Spain and Morocco have agreed to open joint commissioners’ offices in Tangiers and Algeciras from May. The interior ministers from both countries gave the announcement on Tuesday in Rabat. Jorge Fernández Díaz and his Moroccan counterpart, Mohand Lanser, did little detail about the composition of these ‘centres of police cooperation’. Morocco is the first country outside the EU with which Spain has come to such an arrangement. There are already similar offices established with France and Portugal. The talks between the interior ministers today centred on illegal immigration, organised crime and drug trafficking. Fernández Díaz underlined the ‘support’ of the Spanish Government for the process of ‘political and democratic reforms which are being brought in by King Mohamed VI’ in Morocco, and described them as ‘an example for the Arab world and many other countries’.

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Four members of 'Anonymous' arrested in Spain

 

National Police has arrested four members of the Anonymous collective in Spain as part of an international operation against cyber-crime. Two of them are currently in prison thought to be behind DDos attacks, and the other two have been released. They are allegedly linked to attacks on the UPyD webpage, as well as for revealing personal data from the GEOS security personnel. A man known as ‘Thunder’ or ‘Pacotron’ was F.J.B.D. arrested in Málaga, J.M.L.G. known as ‘Troy’ was arrested in Madrid, J.I.P.S was also arrested in Madrid with a 16 year old close collaborator, J.M.L.G. thought to be part of the international hacking group known as ‘Sector 404’. 25 computers have been impounded along with hard discs and other storage devices, following four searches in Spain and these are now being analysed. The case has resulted in two servers being blocked in Bulgaria and the Czech Republic and has developed with the help of Interpol.

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Search for a lorry driver after man and his niece are found dead in Zafra

The Guardia Civil are searching for a lorry driver following a double homicide in Zafra, which they consider was the settling of scores. The family of the man shot dead, a businessman Manuel Borallo, along with his niece, Verónica Gordillo, say that the crime could have been committed by a lorry driver from Algeciras whose whereabouts are now unknown. It’s thought however that he could have been in Zafra when the crime was committed in an industrial estate on Monday. The dead businessman had denounced the lorry driver to the Guardia Civil previously for using his company’s name without permission and also for using lorries with no ITV test or insurance. It seems the lorry driver had travelled to Zafra on Monday to ask for explanations. The only thing the family know is they were talking by phone with the niece, Veronica, when some bangs were heard and the line went dead. They say the last thing she said was she had to go because the man had come to see the papers. An autopsy is being carried out on the two bodies in the Anatomic Forensic Institute in Badajoz.

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Son-in-law of King Juan Carlos of Spain admits he defied orders in corruption trial

 

The Duke of Palma, the husband of the King's youngest daughter Cristina, appeared in court in Majorca over the weekend, subpoenaed to give evidence in a case that has turned the spotlight on Spain's royal family. The Duke, a former Olympic handball medallist who received the title when he married in 1997, has stirred latent antimonarchist sentiments in Spain with the suggestion that he used his royal influence to feather his own nest. The Duke, 44, is implicated in a case that alleges the embezzlement of public funds through the Noos Institute, a non-profit organisation that arranged sporting and cultural events for the regional governments of Valencia and the Balearics, and which the Duke was chairman of between 2002 to 2006. Prosecutors believe up to 5.8 million euros could have misappropriated and have uncovered evidence of funds being squirrelled away to offshore accounts in Belize, Luxembourg and the United Kingdom. Under intense questioning the Duke conceded the King had ordered him to stand down as chairman of the Noos Institute in 2006, shortly after questions were raised over a 1.2 million euro (£1m) contract from the Balearic government.

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Sacha Baron Cohen pulls Oscar stunt for The Dictator

 

Sacha Baron Cohen was escorted off the Oscars red carpet after a publicity stunt for his new film, The Dictator. The British comedian arrived in character as a middle eastern leader and claimed to be carrying the ashes of former North Korean leader Kim Jong-Il. In an interview with US TV host Ryan Seacrest, he said it was Kim's dying wish "to be sprinkled over the red carpet and over Halle Berry's chest". He then tipped the urn over the host, covering his tuxedo in white dust. Baron Cohen, who is known for outrageous publicity stunts in films like Borat and Bruno, was bundled off the red carpet by security guards. Turning to the camera, Seacrest said: "Anything can happen and it most certainly did, all over my lapel.'' Baron Cohen's film is expected to be released in March. He was invited to the Oscars as a cast member of Martin Scorsese's multiple award nominee Hugo. There had been reports during the week that he had been forbidden to attend the ceremony after asking to arrive in character as Admiral General Aladeen - which the Academy denied. In response, the comedian posted a statement to General Aladeen's Twitter account. "VICTORY IS OURS! Today the Mighty Nation of Wadiya triumphed over the Zionist snakes of Hollywood. "Evil and all those who made Satan their protector were vanquished and driven into the Pacific Sea. What I am trying to say here is that the Academy have surrendered and sent over two tickets and a parking pass! TODAY OSCAR, TOMORROW OBAMA!" After the red carpet stunt, Moneyball actor Jonah Hill, who was up for best supporting actor, said: "I guess the Oscars isn't the best place to sell your movie. I think he's a funny guy, though." "Ryan's mouth dropped open on live TV," laughed Jackie Collins. "But that's what makes live TV good. "I don't think Ryan was very pleased, but I don't think I'd be very pleased." Piers Morgan commented it was "just another day in Hollywood". 30 Rock actress Tina Fey saw the funny side, and crossed herself over the ashes as she walked past. Speaking to BBC Radio 5 live, US chat show host Jay Leno said, "only in Hollywood does that dictator override Libya" as a major news story. "And somehow that's more shocking. "It's certainly worse than anything Gadaffi or Assad could possibly have done." Comedian Steve Martin said: "I love Sacha Baron Cohen", and joked that the red carpet shouldn't be sacred ground. "It should be 12% respect, 23% levity and 13% joy," he said. It is not the first time Baron Cohen has used industry events to promote his movies.

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A glamorous French politician is set to become France’s first ever ‘MP for Britain’ to represent more than 100,000 Gallic expats living in the UK.

A glamorous French politician is set to become France’s first ever ‘MP for Britain’ to represent more than 100,000 Gallic expats living in the UK.

Emmanuelle Savarit, 39, is leading the race to be elected to France’s newest overseas constituency - based in London’s well-heeled Kensington.

The member of Nicolas Sarkozy’s conservative UMP party is the clear frontrunner among five hopefuls vying for the seat of northern Europe.

Hopeful: Emmanuelle Savarit, 39, is leading the race to be elected to France's newest overseas constituency - based in London's well-heeled Kensington

The radical plans to create 11 foreign constituencies to represent French abroad were approved by the Paris parliament three years ago.

 

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Britain is part of the northern Europe constituency, which also includes the Irish Republic, Scandinavia and the Baltic states.

But within the new seat, 113,655 French voters are registered in the UK, compared with 27,076 in all the other countries put together.

Divorced mother-of-two Ms Savarit’s main rival is equally glamorous 36-year-old socialist Axelle Lemaire, a London-based lawyer.

Competition: Divorced mother-of-two Ms Savarit's main rival is 36-year-old socialist Axelle Lemaire, a London-based lawyer

But the French media predict the right-winger’s victory will be ensured by wealthy expats based mainly in west London when the first election takes place in June.

Ms Savarit, who has a doctorate in Psychology, describes herself
on her campaign website as ‘a tough cookie’, but adds: 'That’s not necessarily a fault when you’re in politics.'

The new foreign constituencies are the brainchild of former French interior affairs minister Alain Marlaix.

Vital: The importance of the French expat vote was highlighted when President Sarkozy came to London to give a speech to thousands of French voters ahead of his 2007 election campaign

He said: 'This is the first time in any country in the world that something like this had been done.

'The new overseas MPs will have identical status to any other MP based in France, and vote in parliament in Paris.

'They will be elected in the same way and speak for the French expatriates they represent.'

Government advisor Herve Fabre-Aubrespy, who is overseeing the new constituencies, said: 'It is a challenge for us, because nothing similar has ever been done anywhere.

'No one has carved the world up into constituencies in this way.'

The new constituencies are part of a larger parliamentary shake-up, with seats being merged or enlarged across France so that the total number of 577 MPs still remains the same.

The importance of the French expat vote was highlighted when President Sarkozy came to London to give a speech to thousands of French voters ahead of his 2007 election campaign.

But French socialists have claimed the new overseas seats are ‘closet gerrymandering’ - where constituencies are created to the benefit of the ruling party.

A socialists’ spokesman said: 'Studies show French people living abroad are more likely to vote for a centre-right party than a left wing one.
'This is being proposed as something that is good for French expatriates, but in fact it is just a way for the government to give itself another 11 safe seats.'

Six of the 11 new constituencies will be in Europe, but others are based in Canada and the US, central and South America, the Middle East, Arica and Asia, representing more than million French people living abroad.

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Italian Wives ban their husbands from visiting Italian cafe where busty barmaid serves up drinks in skimpy outfits

After eight years running a bar, Laura Maggi suddenly found men beating a path to her door.

Not for the quality of her coffee  and aperitifs, but because she had started appearing for work in highly revealing outfits.

Hundreds of male customers flocked there day and night, leaving their cars double parked in the surrounding streets.

Congestion became such a problem that the lady mayor announced she was considering an emergency bylaw to limit traffic in the area.

Causing controversy: Laura Maggi, 34, who runs a bar called Le Cafe, has dominated newspapers and TV chat shows, after pictures of her dressed in barely anything appeared on the internet

 

Pulling more than a pint: The women folk of Bagnolo Mella, near Brescia, which is where Manchester City ace Mario Balotelli is from, are up in arms and said that they had banned their partners from going to Le Cafe

 

Main attraction: On the walls of Le Cafe there are pictures of Laura, dressed in a bikini on holiday - while in other snaps she is wrapped in an American Stars and Stripes flag. Yet more pictures of her, semi-naked, have been turned into a calendar

You're not going anywhere: Bagnolo's mayor Cristina Almici has also banned her husband from going to Laura's bar and said: 'We have received several complaints from women in the town about the bar'

Now women in the small northern Italian town of Bagnolo Mella have declared Le Cafe out of bounds to their menfolk – and 34-year-old Miss Maggi has become a national celebrity.

Yesterday she was a guest on the Italian equivalent of This Morning and said: ‘I don’t see what the problem is – it’s just a bit of harmless fun. 

‘If the guys come here what can I do?

'I know I have upset the women but that’s not my problem.

'It’s not my fault if guys want to come and have a drink in my bar.’

She added that some customers were travelling up to 70 miles just to have a coffee in her bar.

On the walls of Le Cafe are pictures of Miss Maggi in a bikini on holiday. 

She has 5,000 new friends on Facebook while a local poll found that 46 per cent of respondents said partners of her male customers should be ‘asking themselves why their partners prefer Laura to them’.

Several wives from the town have been on TV to complain. One said: ‘It is outrageous and should not be allowed.

 

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‘This town is quiet and respectable. Now we are known across the whole country because of the little amount of clothing this barmaid is wearing to serve drinks. 

‘The women in town are not very happy and we have complained to the council.’

Enjoyment: 'I don't see what the problem is - it's just a bit of harmless fun. I like to dress in an attractive way and I like to have fun,' Laura said on an Italian TV show

 

Selling point: 'If the guys come here, what can I do? I know I have upset the women but that's not my problem,' said the bar owner

Bagnolo’s mayor Cristina Almici said: ‘We have received several complaints from women about the bar and we are looking at what we can do with regard to public order.

‘There has been a huge influx of traffic into the town since the news of Laura started to spread and this has led to incidents of bad parking and some minor acts of vandalism.

‘We can’t stop people from going to her bar and I know it is very popular with men in the town – personally I don’t see any problem with how she looks or dresses. 

'If anything, it’s the men who go there who have a problem.’

She added, however: ‘My husband is certainly not allowed to go there.’

Crowd pleaser: 'People have been turning up from 70 miles away just to have a drink here,' says the proud bar lady

No blame: 'It's not my fault if guys want to come and have a drink in my bar,' says the owner 

Quiet town of Bagnolo Mella: An online poll in the local Brescia newspaper asked readers what their opinion was and the majority, 46%, said that women should be 'asking themselves why their partners prefer Laura to them'

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ENVELOPES full of cash, drug habits funded by EU grants and police taking payments to legalise prostitutes – you name it, it has happened in Spain.

 

 Add to those a snail-paced justice system and, a law society in Malaga that fails to scrutinize bent lawyers, and things start to look distinctly cloudy. Consider too that last week Spain’s top anti-corruption lawyer, Baltasar Garzon, was suspended from his post for illegally tapping the phones of lawyers, and most will come to the same conclusion. “Yes, corruption is certainly endemic in Spain,” says Gwilym Rhys-Jones, an Estepona-based financial expert. “Sadly there is a tradition of it and it became institutionalised since the late 1980s as nobody was dealing with it from the top down.” There is certainly nowhere better to highlight the problem than here on the Costa del Sol, where in Marbella for over two decades you could only get anything done if you were prepared to pay for it. Under the current Malaya corruption trial, centred around Marbella Town Hall, which has been going for over a year. Over a hundred councillors, mayors, businessmen and civil servants are currently on trial for taking backhanders totalling up to 2.4 billion euros. And sadly, the same state of affairs was taking place at hundreds of town halls around the country, with a central government apparently prepared to turn a blind eye. It led to hotels and golf courses being built in national parks, developments installed in river flood plains and hundreds of thousands of illegal – and unsellable – homes around the country. It comes as no surprise then that Transparency International has listed Spain as more corrupt than Uruguay, Chile and Qatar, and almost on a par with of Botswana – quite a feat for the fourth richest nation in the European Union. And while some might like to point the finger at the right or the left, the range of cases shows that bending the rules for personal gain goes right across the spectrum. The Conservative PP party has often been in the spotlight – most recently thanks to the Gurtel case, in Valencia – but the PSOE socialist party, particularly with the ERE pension scandal in Andalucia, certainly takes some beating. Even the royal family may have dipped its toes in the murky waters, with King Juan Carlos’ son-in-law about to stand trial for a misuse of public funds and embezzlement. So where did it all begin? Franco regarded it as the ‘necessary lubrication for the system’, according to historian Stanley Payne. While central government appears to be largely free of endemic corruption, in the regions it is quite a different story. In Andalucia, for example, UGT trade union leader Manuel Pastrana believes as many as 75 per cent of the region’s town halls are corrupt. This is partly down to the fact that much of Spain’s corruption is linked to illegal planning, which is said to be more profitable than drug dealing – mainly because tourism is the biggest earner on the Costa del Sol. It’s a simple tale, and sadly all too common. Developers purchase non-urban, rural land for knock-down prices, then pay corrupt town hall mayors to reclassify the land as available to develop. This leaves the developers to build whatever they like – and it is arrangements like this that explain the illegal 411-bedroom Algarrobico hotel in Almeria’s Cabo de Gata natural park – which will thankfully be demolished any day now. The question is, why are so many mayors and councillors tempted to the dark side, considering the possible environmental and criminal consequences? Aside from describing Spain as having the ‘slowest justice system in the known world’, investigator Rhys-Jones argues that it is human nature to be tempted by money once it’s dangled in front of you. “When people see a massive amount of money, they can’t help but steal it. It’s human nature,” he says, using the unscrupulous former Marbella mayor Jesus Gil as his example. Jesus Gil was described as the bad apple that spoilt Marbella’s bunch “Gil was a crook, but he started out with good intentions. Marbella was a mess in the 1980s. Property wasn’t selling. It was a dump filled with drugs and hookers. So Gil started a political party, the GAL, to try and sort it out.” But this apparent do-gooder turned resident evil, with many describing Gil – who was convicted in 2002 – as being the bad apple that spoiled Marbella’s bunch. Either way his legacy was a disaster and has led to the following three mayors – as well as his main cohort, planning boss Juan Antonio Roca, who became the svengali of the operation – all facing prison. Much of the corruption comes down to backgrounds and a lack of education, believes Marbella-based lawyer Antonio Flores. “A lot of mayors have previously had rural-based jobs, without the ability to make any money,” he explains. “The moment they have responsibility, the temptation to make money becomes too great. After four years in power, they’ll often have to go back to their tractors,” he says. A classic example of a rags-to-riches mayor is Julian Munoz, also heavily implicated in the Malaya case, who worked as a waiter before running Marbella Town Hall in 2002. Roca, too, had been on the dole before going on to pilfer 30 million euros. Planning boss Juan Antonio Roca, the main man in the Malaya case Flores compares town hall councillors with more prominent politicians in central government who are less reliant on get-rich-quick methods: “It’s not so difficult to get another job when you’re in a higher political position,” he says. The good news is that most commentators agree that corruption in Spain is on its way out. “The Malaya case was where the mentality changed,” estimates Flores. “It was a turning point for corruption and the Marbella run by thugs completely collapsed when they were all arrested. “As Spain becomes more civilised, we are slowly getting rid of corruption,” he continues. “But it has definitely not gone completely,” argues Rhys Jones. “That will take quite a few more decades.” As for shamed Judge Garzon, opinion remains firmly divided on whether he too was a man who let power corrupt him… or whether he has been silenced by a country whose corruption will be harder to iron out than some may hope. Big cases Malaya Planning chief Juan Antonio Roca is at the heart of this 2.4 billion euro scandal in Marbella. The unelected Roca operated a cash-for-permissions scheme, which saw over 18,000 homes built illegally. Gurtel Businessman Francisco Correa gave money to PP bosses in Valencia in return for lucrative contracts with the regional government. ERE The Junta is being investigated in a 647m euro retirement scandal, where posts were created in non-existent companies in order to defraud public funds. Ballena Blanca One of the largest money laundering cases in Europe, with 21 people accused of investing proceeds from drug trafficking and prostitution in property via over a thousand companies.

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EU clampdown on unregulated financial advisers in Spain

 

The European Commission is to consider setting up an ombudsman to help expat victims reclaim against unregistered financial firms. It comes after a local pressure group, that represents over 1,000 victims, sent a dossier of information to Brussels. The Costa del Sol Action Group demanded action against the advisers who, it claims, have lost their clients over €120 million (£102 million). “It is good news as something has to be done about this bunch of rogues,” said group founder David Klein. “The current Spanish regulatory system is totally inadequate and ineffective. Dealing with the authorities is a constant game of ping-pong. Anyone can come to Spain and be a financial adviser; they could have been selling fish before they came here for all anyone knows." This situation could soon be coming to an end, after the European Commission confirmed it was to begin "a preliminary investigation of the problem". Foreign Office plans evacuation of expats 18 Dec 2011 It has asked for more information and the action group has called on all victims to write to the European Parliament outlining their experience. “This problem is causing untold stress and heartache in the expatriate community and it cannot be allowed to continue,” explained Klein. The European Commission is to study how investors would be able to make an official complaint against Independent Financial Advisers (IFAs). At present, there is no effective means for victims to make a complaint against product providers who work with unregistered IFAs. The group was also highly critical of the local media for its willingness to accept adverts from unregulated financial firms in a bid to maximise advertising revenue. To highlight the problem, the group included testimonials by members who were allegedly defrauded by one specialist investment brokerage, which it claims is "not regulated or registered". It said the company was able to trade, "collecting unsuspecting clients who are soon relieved of their money". One Costa del Sol-based financial adviser, Richard Alexander, said he was pleased with the EU’s response. “Bring on the review,” he said. “I have seen too many sad stories of people being turned over, badly advised or grossly over-charged by unregulated independent financial advisors in Spain. "It is entirely possible to provide professional, quality advice without the client losing out.”

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Posted in: EU clampdown on unregulated financial advisers in Spain