Naked cyclists in Spanish city protests

 

Thousands of naked cyclists took to the streets of Madrid, A Coruña, Valladolid and other cities across Spain on Saturday to demand greater use of bicycles and more infrastructure for cyclists. The cyclists say they feel ‘naked’ in the heavy traffic of the cities and that they were showing their ‘fragile bodywork’ to demand greater respect from other road users.

525 hectares affect by fire at Tossa de Mar

 

Fire fighters brought a fire on the Costa Brava under control on Saturday after it had affected some 525 hectares. The famous local Tramutana northerly wind complicated matters, and dozens of residents had to be evacuated from their homes in Tossa de Mar and Llagostera. The fire started on Friday and was out by Saturday afternoon after firemen opened a firebreak by the road which goes between Sant Grau and Tossa de Mar so they had better access to the fire. Airborne resources, three helicopters and four planes, were key in the controlling of the fire on Saturday after land based equipment was using during Friday night. The cause of the Girona fire, and of the four fires in the Pyrenees which are now extinguished is being investigated.

44 year old British angler, named as Andrew Latham, has died while out fishing for carp at the Amadorio dam

44 year old British angler, named as Andrew Latham, has died while out fishing for carp at the Amadorio dam inland from Villajoyosa. He died instantly last Wednesday morning, at about 1130am, when his fishing line hit a power cable after he lifted his rod above his head after catching a fish. A fellow anger called the emergency services, when he saw the body floating in the reservoir, but they were unable to revive the Briton. Spanish police say they are treating it as an accident. It’s not yet clear whether Andrew Latham was a resident of Spain or on holiday.

British man falls to his death in Benidorm

 

42 year old father of four, Tyrone Jones, known as Ty, has died trying to climb into his apartment after locking himself out on the last day of his holiday. He had been visiting Benidorm for two weeks with a friend. The motor trader from Exeter in Devon fell off a four metre wall and suffered fatal head wounds. Reports indicate the top bricks of the wall were loose. His grieving relatives report that he must have been lying on the ground for up to five hours before he was seen. His parents flew out to Spain when they heard about the tragedy and Ty was on life support in hospital. His organs have been donated to save the lives of three other people, with use being made of his kidneys, pancreas and liver.

German man arrested after Málaga lawyer's body found in the boot of his own car

It's now been established that robbery was the motive of the fatal attackThe lawyer's car where his body was found in the boot -The body of a lawyer, named as Salvador Andrés Reina, has been found in the boot of his car in Málaga. The lawyer had vanished in strange circumstances in Málaga last Friday and his body was found on Thursday, in the boot of his own car, parked by the bus station in the city. Police say the man’s body shows evident signs of having suffered violence, having been stabbed several times. A 50 year old German man, named with the initials P.R.B. has been arrested in connection with the case. He was arrested before the body was recovered on Thursday morning. Questioning has revealed that he had pretended to be a client, and killed the lawyer to rob him of 1,200 € which the lawyer was forced to take out of his bank. The lawyer’s family raised the alarm with the police on Friday morning last week after Salvador Andrés failed to return home as normal the previous night. They noticed that he had taken a large amount of money from the account, and this was very strange behaviour for a happy married man with two children. The German’s face was captured on a security camera, which has led to his arrest. The Málaga Lawyers College issued a statement which said that Salvador Andrés Reina ‘had been assassinated when meeting his obligations as a lawyer, attending to his office, when a unknown man turned out not to be a client, but a thief and a killer’. The College expressed its sympathies to the family, his companions and friends, and thanked the police for their ‘very intense’ work in solving the case and detaining the suspect.

Spain's 2 big unions call for general strike March 29

Spain's two main unions on Friday called a general strike for March 29 to protest the new conservative government's labor reforms and austerity cuts. It will be the first general strike against the government of Prime Minister Mariano Rajoy, which won elections last November and took office late last December, in the midst of Spain's deep economic crisis. The last general strike, in September 2010, was against the then-Socialist government, which also had initiated austerity measures. That strike slowed industry and transport, but much of the country went to work and many analysts saw it as a kind of a draw between the government and unions. Since then, the economic crisis has deepened. Spain's jobless rate is nearly 23 percent overall, and nearly 50 percent for youth. Nearly 5.3 million Spaniards are out of work. Union protests across the nation last month drew large crowds, which analysts say emboldened the unions to move ahead with a general strike. The government says the latest labor reforms are needed to bring flexibility to the workplace and to simplify the rules for employers. But unions say the effect will be to make it easier and cheaper to fire workers. The two main unions -- the Socialist-leaning General Workers Union and the Communist-leaning Workers Commissions -- held separate meetings Friday and then announced the general strike for March 29, a date Spanish news media have been reporting for days as the likely date for the strike. Rajoy, at a recent European Union summit, was reported by Spanish media to be overheard, via an open microphone, telling another EU leader that the labor reforms would cost him a general strike. The reforms were approved first as a decree law, with immediate effect, and the unions called on the government to make amendments as the bill moved through parliament. But the conservatives have a commanding majority in parliament and on Thursday approved the reforms unchanged. The government says the labor reforms make up only a portion of the elements needed to spur an economic recovery. It predicts a 1.7 percent decline in the economy this year. The government also has demanded reforms in the banking sector with the aim of getting credit flowing again and to clean up the books of lenders stuck with huge uncollectable debts left over from Spain's real estate and construction boom that went bust, precipitating the economic crisis. The unions earlier called a round of protests for this Sunday, which coincides with the eighth anniversary of the Madrid train bombings terrorist attacks that killed 191 people.

Top Italian mafia chief arrested in Jerez

 

Guiseppe Polverino has been controlling his business interests in Italy from JerezThe Guardia Civil, in collaboration with the Italian Carabinieri, have arrested a Camorra mafia chief and his deputy in Jerez. Giuseppe Polverino is the boss of the Naples Camorra and was with his deputy, Raffaelle Vallefuoco, when they were found by the Guardia Civil who were carrying searches of several properties the Mafia chief was known to have in Jerez. Documents found indicate that the 56 year old Polverino controlled his ‘business interests’ in Italy from Jerez. Many fake documents were found along with dozens of mobile phones. Polverino has been on the run since 2006, and was on the list of the top 30 Italian most wanted. The Italian judiciary thinks he has been controlling an economic empire worth 1 billion €.

Emergency op for Maurice Boland

RADIO DJ Maurice Boland has thanked his fans for support after he was rushed to hospital for emergency treatment. The DJ, who launched his own station iTalk last year, suffered an infection in the lower colon, but is now back home and on the road to recovery. “It was great to get such an extraordinary amount of messages of support,” he told the Olive Press. “It got me thinking about how many expats are in hospital without anyone to visit them. “I’ve set myself a mission to get volunteers to visit sick expats in hospital.”

German man arrested after Málaga lawyer's body found in the boot of his own car

 

The lawyer, who has not yet been named, went missing last Friday.The lawyer's car where his body was found in the bootThe body of a lawyer, named as Salvador Andrés Reina, has been found in the boot of his car in Málaga. The lawyer had vanished in strange circumstances in Málaga last Friday and his body was found today, Thursday, in the boot of his own car, parked by the bus station in the city. Police say the man’s body shows evident signs of having suffered violence. A 50 year old German man, named with the initials P.R.B. has been arrested in connection with the case. He was arrested before the body was recovered on Thursday morning. It’s not been revealed if he was a client of the lawyer, or whether robbery was his motive. One theory the police are following was that there was a kidnapping which somehow went wrong. The police operation continues open. The Málaga Lawyers College issued a statement which said that Salvador Andrés Reina ‘had been assassinated when meeting his obligations as a lawyer, attending to his office, when a unknown man turned out not to be a client, but a thief and a killer’. The College expressed its sympathies to the family, his companions and friends, and thanked the police for their ‘very intense’ work in solving the case and detaining the suspect.

Esperanza Oña denies that Fuengirola is bankrupt

The Partido Popular Mayor of Fuengirola, Esperanza Oña, has denied that the town is bankrupt. The PSOE has claimed that the debt has risen to nearly the size of a year’s income. The PSOE General Secretary in the town, and Socialist Spokesman, Javier García León, said today Esperanza Oña had ‘dismissed’ the idea when questioned in a press conference. García León said the Town Hall owes nearly 100 million € and that, he claimed, meant that the municipal accounts were in a ‘serious situation of financial unsustainability’.

Andalucía is thought to have entered into a drought cycle, and the current 60% fall in rainfall has not been seen since 2004,

 

Rainfall has been well down on the last three months and if it does not recover many farmers will suffer  Andalucía is thought to have entered into a drought cycle, and the current 60% fall in rainfall has not been seen since 2004, and we have to go back to 1998 to see a drier time in Sevilla. Some areas of the region have seen very little rain, causing large problems for farmers especially. The Sierra Morena, the Córdoba Campina and parts of Huelva have been particularly dry, while in Santa Elena in Jaén they have seen just 32 litres per square metre, 92% down on the average since 1980. Fortunately this new drought cycle comes after three years of abundant rain; 2009 was the wettest in the last half century, and so reservoir levels are running still at an average of 75.6%. That’s still down from 84.73% a year ago. Regional delegate from AEMET, the State Meteorological Agency, Luis Fernando López Cotin, said the most affected areas are in the north and west of Andalucía, but the Regional Councillor for the Environment has called for prudence when predicting a drought cycle. Young farmers association ASAJA has warned that if it does not rain this Spring 40% of the olive harvest will be lost, and means losses of 400 million € in the province of Jaén alone.

Spain deficit slippage 'serious'

 

Spain is hurtling towards an embarrassing test case and possible big fine under new EU rules for a "grave" breach of budget limits, the European Commission says. The overshoot amounts to scores of billions of euros, and led analysts to warn that leaders may have signed away more sovereignty to Brussels than intended during the debt crisis and that the onset of recession risks derailing the implementation of new EU rules. "We need to shed full light on what went on Spain in 2011," EU Economy Commissioner Olli Rehn's spokesman Amadeu Altafaj said on Monday of what he called a "serious, grave" gap in the figures. Advertisement: Story continues below Altafaj said Madrid notified Brussels on December 30 that it had overshot its 2011 deficit target by two percentage points, then two days ago that it was another half a percentage point higher. Spain's 2011 public deficit was supposed to come in at six per cent of gross domestic product (GDP) but ended up at 8.5 per cent, meaning the state spent 90 billion euros ($111 billion) more than it took in last year. As a result, Prime Minister Mariano Rajoy said on Friday last week Madrid could not hope to close such a huge gap to meet the 2012 target amid soaring unemployment and a deepening recession. He did so hours after he and 24 other leaders signed a much-heralded EU treaty supposed to end EU states piling on debt. "The heat of the crisis meant that EU leaders may have signed off more sovereignty than they have prepared their electorates for," said Sony Kapoor, head of economic consultancy Re-Define. "Now the backpedalling has begun." Blaming over-optimistic forecasts by his Socialist predecessors, Rajoy said Spain's public deficit would now reach 5.8 per cent of output in 2012, nearly twice the EU limit and well above the 4.4 per cent level previously agreed with Brussels. The difference would represent a sum not far short of the 90 billion euros for 2011 - not dissimilar to the size of the entire bailout agreed on for neighbouring Portugal. Altafaj said Rehn already asked Spain for "clarity" during talks among eurozone finance ministers last on Thursday and is still waiting. "It's clear we need these hard figures, validated, in order to do a full assessment," he said. As a eurozone state, Spain risks a cash fine worth between 0.2 per cent and 0.5 per cent of GDP depending on the severity of the circumstances under new laws meant to tighten budgetary discipline that came into force at the start of the year. There is a growing likelihood that the European Commission will order Spain to maintain preset targets, with one key source saying top Brussels officials, awaiting April budget submissions, are "of a mind to negotiate nothing and simply open infringement proceedings". "Once we have clarity," Altafaj said of the detailed figures and analysis wanted in Brussels, "we will do our analysis and make our recommendations." Rajoy, though, already argued on Friday his new 5.8 per cent goal was a "sensible" position to adopt, and two senior EU diplomats have suggested Madrid could be allowed to postpone some of the toughest decisions on cuts to 2013. One of these diplomats said to expect Madrid to slash its deficit from 8.5 per cent of GDP to 4.4 per cent as planned in one year would be "a rather steep reduction - probably simply not possible". This source said Spain had indicated the problem lay with its autonomous governments, such as Catalonia or the Basque Country. However, he also noted "an underlying issue is that you shouldn't have different rules for small and bigger countries". Eurozone and EU finance ministers are due to discuss Hungary's slippage next week. Missed targets there resulted last month in a recommendation by Rehn that 500 million euros in EU grants should be suspended next year unless corrective action is taken.

Spain seeks jurisdiction guidance from EU for Google privacy complaints

Spain's National Court has asked Europe’s highest court to clarify jurisdiction issues in cases involving individual privacy complaints against Google and search engines in general. According to Spain’s National Court (Audiencia Nacional de España, AN), it is unclear who should make a decision about personal privacy complaints from people who do not want their data to appear on third-party websites such as search engines.

Spain tries to head off deficit rebellion in regions

 

Spain's centre-right government moved on Tuesday to head off any potential rebellion by the country's 17 autonomous regions over cost-cutting measures that are key to retaining credibility with its euro zone peers and financial markets. Finance Minister Cristobal Montoro was scheduled to meet with the financial heads from all of the regions later on Tuesday to drive home the message of austerity. The regions account for close to half of all public spending - the biggest parts of their budgets go on health and education - and almost all of them widely overshot their spending targets last year. Spain's country risk, as measured by the spread between its borrowing cost and that of Germany, overtook Italy's this week as concerns have grown whether the regions, with a combined deficit of 30 billion euros, can tighten belts. "There won't be flexibility ... The (central) state has taken a lot of steps, now it's up to the autonomous regions to take the next steps," Antonio Beteta, secretary of state for public administrations under Montoro, said at a conference. Beteta was reacting to comments from politicians in various regions, that they should get some leeway, since the central government was giving itself some flexibility on its own deficit target this year. Prime Minister Mariano Rajoy defied the EU on Friday to soften Spain's deficit objective, but even his more realistic target will be beyond reach if regional leaders, most of them from his own party, the PP, pose a similar challenge to his authority. Anti-austerity protests mounted last week as students anticipate deep cuts in education and healthcare. Spain's deficit target for 2012 had been agreed with the EU at 4.4 percent of gross domestic product. But that was when the economy was expected to expand by more than 2 percent this year. It is now forecast to shrink by close to 2 percent and Madrid has also said that last year's deficit came in much higher than expected. Rajoy said he would budget for a 5.8 percent public deficit, arguing that he was not breaking EU rules because Spain would still be on track to reduce its deficit to 3 percent in 2013, the ultimate goal. However, he did not pass on much wiggle room to the autonomous regions, softening their joint deficit target to 1.5 percent of GDP from the previous goal of 1.3 percent. Beteta said the government was providing the autonomous communities some 35 billion euros in loans to be able to meet an enormous backlog of unpaid bills to street cleaners, health workers and other public contractors. Spain is a highly decentralized country with only 18 percent of public money spent by central government. Tensions between the centre and the regions has waxed and waned since the 1978 constitution gave them significant self government powers during the transition to democracy after the Franco dictatorship. "Spain cannot be perceived as having a difficult legal structure. We need, and I will not tire of saying this ... to generate confidence and that is perfectly compatible with the concept of a Spain that is united in its diversity," Beteta said.

police also seized homes worth $14 million (euro10 million), including seven in the southern jet-set resort of Marbella.

 

A Spanish court ordered the extradition Friday of a close aid to ousted Egyptian President Hosni Mubarak along with his son. Hussein Salem, an ex-army and intelligence officer, had been closely linked to Mubarak since the early days of his regime three decades ago. Salem, his son Khaled and an associate described as a frontman were arrested in a wealthy Madrid suburb in June. Salem was being held on suspicion of money laundering and corruption. Investigators froze $47 million (euro33 million) in accounts held by Salem and police also seized homes worth $14 million (euro10 million), including seven in the southern jet-set resort of Marbella. Salem is alleged to have won lucrative land and other deals, including exporting gas to Israel, because of his close connections to Mubarak. The natural gas deal has been heavily criticized in Egypt. Spanish investigators said the money frozen by Spain was funneled into Salem family and business accounts through a series of companies created by the alleged frontman, a Turkish citizen. Spain's National Court placed two conditions on the extraditions. It said both cases should be heard by juries other than those which were already trying them in absentia, and both men had the right to chose to return to Spain to serve out whatever sentences they get in Egypt. On Thursday, an Egyptian court sentenced Salem to 15 years in jail after finding him guilty of buying land on a nature reserve in the ancient city of Luxor from Egypt's former prime minister, Atef Obeid, and his deputy, who each received 10 years in jail in the case and are imprisoned in Egypt. He was also sentenced earlier to seven years in jail for the natural gas controversy. Because Salem was tried in absentia, he will be given retrials upon his return. In a separate case, Salem is a co-defendant in the corruption trial of Mubarak. The former president and his two sons are accused of accepting five villas worth nearly $7 million in the resort town of Sharm el-Sheikh from Salem. In exchange, Mubarak used his influence with the governor of South Sinai, where Sharm el-Sheikh is located, to ensure Salem could buy prime real estate in the town at a vastly reduced price to build a resort complex, according to the charges. Salem left Egypt a week before Mubarak was forced to resign in February 2011. Egyptian protesters have pressed for the prosecution of Mubarak and his cronies due to years of alleged abuse and corruption.

Lloret de Mar turns its back on drunken tourists

 

A barrage of new by-laws has been issued to control the holidaymakers.Following the disturbances seen last summer, the Lloret de Mar Town Hall has passed more restrictive by-laws designed to combat ‘drunken tourism’. Last summer clashes between drunken tourists and police led to 20 arrests when the regional police Los Mosses stopped more clients entering a discotec because the air conditioning was broken. 22 people needed medical treatment including nine officers. That is being described now as a point of inflexion in the town’s tourism. The new regulations are designed to control behaviour on the public highway and encourage civic solidarity. They include a ban on routes known as ‘pub tours’ or ‘disco tours’, and the ‘offering, requesting, promotion or discussion of accepting direct or indirect sexual services’ is banned in public spaces. The consumption of alcohol in the street is also banned as the advertising or bar promotions for alcohol with greater than 20 º content. Also out are free bars, 2X1, happy hours and club cards. Machines which serve drinks are banned on the public highway. Also prohibited is sleeping by day or night in a vehicle, and urinating in the street. There is even a new law prohibiting the practice of ‘balconing’ with fines of as much as 1,500 € for that, although some fines could be as high as 3,000 €. People will only be allowed to walk without a shirt or just in a swimming costume when they are on the beach. Mayor of Lloret de Mar, Romà Codina, said the measures had much to do with the success of similar programs in Barcelona.

Tomb opened to investigate stolen baby allegation, and found to be empty

A judicial commission given the job of exhuming the remains of baby girl, as part of the investigation into alleged stealing of babies, opened the site where the baby’s remains was supposed to be, at an old cemetery in Ronda, Málaga. A court in Málaga had authorised the exhumation to carry out DNA testing to confirm identity, but the tomb was empty. Diario Sur reports the mother said there was nothing there ‘Not even a blanket or clothes, nothing at all, just an empty box with a cross on top’. The parents saw the child being born alive, but they were told later that she had died. The death is not recorded in the Registro Civil.

Makers say 'sorry' as excessive vitamin D found after dog food recalled from 190 Mercadona stores

 

A Brand of dog food in cartons sold by Mercadona has been blamed for causing kidney failure in pets. The supermarket chain – the largest in Spain – has now withdrawn carton-packaged Compy wet dog food from its shelves in 190 stores in Albacete, Almeria, Alicante and Murcia provinces. This action followed a flood of concerns from dog owners – including scores of expatriates – after their pets had been taken ill, with some vomiting violently. On Tuesday, four days after Mercadona had withdrawn the food from sale as a safety precaution, a statement from Tunilament pet division, which is part of Escuris, the company that manufactures Compy, confirmed tests on the pet food had confirmed excessive Vitamin D. They admitted that this Vitamin D increment could cause urine problems to pets, although only through high doses or persistent use of the product, according to the manufacturer’s veterinarian reports. Earlier, vets and many expatriates had identified Compy wet dog food in aluminium-lined cartons and sold by Mercadona as the common link between dozens – and possibly hundreds – of complaints by dog owners over sick pets. There were even reports by expatriates living in the Costa del Sol, but a Mercadona official gave assurances that the Compy product packaged in these cartons was not sold by them in Malaga Province. British-born Audrey Millar of Benitachell (Alicante) said her three dogs (Shih Tzu, aged 7 yrs, 4.5 yrs and 20 months - Teddy, Shakira and Latika respectively) had always eaten “the Mercadona dog food in the big tins priced at €1.25 a can.” “When the packaging was changed to cartons (indivisible packs of 3) they were less than enthusiastic about the food but did eat a bit - I mix it with Burns Mini Bites dried food for them.” “Within a couple of days they started to vomit violently (thank God for tiles!) and refused to eat the food.  I took them to the vet and she thought initially that they may have ingested pesticide as she had had a couple of other local dogs in with the same symptoms.” “She ran renal function tests on two of them and their urea and creatinine levels were raised.  “ “She did not consider it worth running the blood tests on the third one (Latika) as she had the exact same symptoms I then started cooking chicken/turkey/ brown rice/vegetables for them until their stomachs settled but I will continue to cook for them now.  All have lost a little weight but are almost completely back to normal although Latika was sick last night - they are on Uro Can tablets to protect their stomachs.” “Thanks for bringing this into the public domain - I am glad Mercadona seem to be taking it as seriously as they should be and let's hope they are willing to reimburse customers for vet's fees incurred - I know it has cost some people 100s of Euros and, worse still, some people have lost their beloved pets due to this fiasco. “And there is the cost of all the cleaning products I bought from them to clear up piles (and it was) of dog vomit for a couple of weeks!” “I feel quite guilty to be honest, as I know other pet owners do - like I have been poisoning them really. “ Meanwhile, Veronica Catala of Clinica Veterinaria Benitachell said she had seen 10 to 15 cases of dogs with kidney problems in the last two months, and the majority of dog owners – including Ms Millar - had fed pets with the Comfy dog food in cartons. Inka Labsch of Clinica Veterinaria Europa in Mojacar (Almeria) confirmed that in the last month there had been a huge rise in the number of dog owners bringing in pets suffering from kidney problems. “In the past month there have been nearly 10, and quite a few otherwise young and healthy animals.” Tests to see if the kidney problems was caused by Leishmaniasis came back negative, a vet told EWN. “At one point we thought it might have been caused by pesticide used to combat the Red Weevil Beetle plague we have here,” said Inka. “But then I heard that other vets in other towns were experiencing similar unusual numbers of young dogs with kidney problems, so I do not think it is that. Many of the dog’s owners say they feed their pets with Mercadona’s Compy brand wet dog food,” said Inka. Various pet owners’ who feed their dogs this pet food confirmed this. One of Inka’s patients is ‘Goldie, who is on a drip for five hours a day after tests showed she had kidney problems. Ken Grey’s five-year-old white German Shepherd ‘Gemma’ started to develop symptoms, which include excessive thirst. His partner Georgette Hurcomb took Gemma to the vet in Garrucha who confirmed the kidney problem. “I personally know of at least six dogs who all eat the same brand of dog food who have this problem, although I understand there are at least 20 dogs who may be affected, one of which died,” said Georgette who lives in Palomares. “We drink the same water as the dogs and they only eat this brand of dog food.” “I made a complaint to Mercadona and a representative contacted us very concerned and said they would take the dog food off the shelves and would conducting tests.” Jamie Moore’s dog Tyson was diagnosed with ‘bad kidneys’ by the vet in Turre. “I did not think it could have been the food from Mercadona as my dog has eaten this brand of food for many years,” said Jamie. “But since its packaging changed, he has had a reaction.” Albox resident, Heather Whythe’s dog ‘Scruffy’ fell ill after a week of eating the ‘trozos in salsa’. “Since switching to another dog food, she is now back to her normal self,” said Heather. Chris Reade realised something was wrong when his dog began drinking excessively, suffered from urinary incontinence and went from 20 kilos to 16 kilos. “No definite diagnosis was found, although liver and kidney function results were abnormal. I immediately took the dog off the meat and with complete rest and a diet of chicken and rice she is thankfully on the road to recovery.”

Spain’s Deficit Tests Europe’s Financial Rules

 

ONLY months after they tightened the rules for the euro, Europeans are again confronting a question posed a decade ago: Is their rule book in fact a little stupid? In 2002, Romano Prodi, then the president of the European Commission, provoked widespread criticism by using the word “stupid” to describe the Stability and Growth Pact, a set of rules intended to maintain the stability of the euro zone by imposing fiscal discipline on member states. Now Spain is pressing for leniency, using more polite language but a similar argument. Deep in recession, Spain is not close to hitting European Union target dates for cutting its budget deficit to acceptable levels. And that, according to the logic of the new rules, ought to begin a process leading to the imposition of fines against Spain’s government. Euro zone finance ministers are set to discuss Spain’s economic situation Thursday in Brussels. It may come up again when European heads of government take part in a two-day meeting to discuss policies intended to increase economic growth. The new center-right Spanish government led by Prime Minister Mariano Rajoy faces a severe economic squeeze. To hit the European Union’s deficit target it would need to impose another austerity package that, according to estimates, would be more than double the 15 billion euros, or $20 billion, of tax increases and spending cuts already agreed to this year. And Spain is entering its second recession since the sovereign debt crisis began and is struggling with an unemployment rate of nearly 23 percent. But the European authorities face a dilemma, too. The Spanish case illustrates a design flaw in the euro rule book — fining a nation in financial trouble can only make matters worse. Even insisting on more austerity could drive Spain over the edge. Inaction, however, could threaten the credibility of the revised rule book when financial markets remain nervous. While the European Commission, the executive body of the 27-nation European Union, has issued tough warnings to some smaller nations, including Hungary — which is outside the euro zone and subject to different sanctions — Spain is the first large country to run afoul of the strengthened rules. The issue is particularly delicate because when France and Germany violated the original pact in 2003 by running up excessive deficits, the agreement was softened. And some policy makers have said that is one reason euro nations did not weather the financial crisis better. Last year the pact was strengthened to make sanctions more difficult to avoid and to make overall debt levels a bigger factor in determining whether penalties should be applied. Jean Pisani-Ferry, director of Bruegel, an economic research institute in Brussels, said Spain posed a substantial test for the new rules. “It is big because it is a bigger country and this is a tough case: how to reconcile fiscal discipline and economic realism,” he said. “Spain is facing a true recession,” he added, with estimates that its economy will continue to contract. “The commission is forecasting minus 1 percent, the Bank of Spain minus 1.5 percent, and there is no shortage of people forecasting even less. I think they should be careful at a time when they are embarking on a large number of reforms.” But Mr. Pisani-Ferry added that the European Commission had latitude in determining whether a country had violated the new rules. The commission will recommend how to proceed, and, if it has determined that Spain has tried its best to meet the target dates but has been blown off course by events outside its control, the European Commission can propose new target dates. Under the Stability and Growth Pact, European nations are supposed to keep their budget deficits below 3 percent of gross domestic product and their debt levels below 60 percent of G.D.P. Spain’s target was a deficit of 6 percent of G.D.P. in 2011, 4.4 percent in 2012 and 3 percent in 2013. On Monday, though, the Spanish government said it ended 2011 with a deficit of 8.5 percent of G.D.P. Speaking in Brussels on Wednesday, the president of the European Commission, José Manuel Barroso, said he was awaiting more information from Madrid, and the new Spanish budget, due to be presented in March. “The reality regarding Spain is that we do not yet have a full picture of Spain’s fiscal slippage last year and the reasons for that slippage,” Mr. Barroso said. “Only then, when we receive the concrete information, we’ll be able to take a position.” He expressed confidence that the new budget “will be fully in line with the Stability and Growth Pact rules.” The national government in Madrid has blamed Spain’s regional governments, estimating that they accounted for about two-thirds of the slippage last year. The regions ended 2011 with an average deficit equivalent to 2.94 percent of G.D.P., compared with a target of 1.3 percent. Spain is one of at least 23 European Union nations in violation of the bloc’s rules, subject to what is known as “excessive deficit procedure,” with closer monitoring and clear targets. But it was already given the benefit of the doubt in December 2009, when it was allowed an extra year to reach the 3 percent deficit level. All of which makes for a difficult decision for the commission, which must walk a tightrope between squeezing Spain’s economy too much and undermining the new rules. Mr. Pisani-Ferry said he believed that it should worry more about the first of those factors than the second. “Credibility rests also on the fact that what you do is economically sensible,” he said.

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%.