Confidence in Spanish bailout plummets

 SPAIN’S BORROWING costs spiked to a euro-era record amid doubt over Europe’s bailout for the country and uncertainty over the outlook for the rerun of the Greek election on Sunday. As officials said the possibility of capital and border controls to quell any post-election bank run in Greece was under examination, the euro declined and Italian borrowing costs came under yet more pressure. The interest rate on Spanish 10-year debt reached 6.83 per cent and the rate on comparable Italian debt edged further beyond the critical 6 per cent level to reach 6.3 per cent before easing back to 6.17 per cent. Although Spain is obliged under its bailout to continue raising debt in regular markets for day-to-day purposes, the current interest rates are very near levels considered unsustainable. EU officials still argue that turmoil is inevitable in the run-up to the Greek poll and in its immediate aftermath. However, any failure to arrest the pressure would leave Madrid running the risk of having to seek a full-blown bailout later this year. Declining confidence in the Spanish plan, agreed only last Saturday, came as Italy criticised Austrian finance minister Maria Fekter for suggesting that Rome would soon follow Madrid in seeking external aid. “Italy has to work its way out of its economic dilemma of very high deficits and debt, but of course it may be that, given the high rates Italy pays to refinance on markets, they too will need support,” Ms Fekter told Austrian television on Monday night. Although she backtracked yesterday, Italian technocrat prime minister Mario Monti said her remarks were “entirely inappropriate”. European officials castigated Ms Fekter, saying open speculation of this nature by a finance minister called into question her political judgment. In Brussels, the European Commission acknowledged it gave legal assistance to finance ministry officials who are examining contingencies for a possible Greek exit from the euro. The commission insisted, however, that no plans were in train for Greece to leave the currency and expected Greece to stay. “Some people are working on scenarios. We are providing information about EU law as guardian of the treaties,” a commission spokesman said. He was responding to a Reuters report which said finance officials have examined limiting the size of ATM withdrawals, imposing border checks and introducing euro zone capital controls in case Greece leaves. “I’ve not said I’m not aware about any discussions. I’ve said I’m not aware about any plans, which is a slight difference,” the commission spokesman said. EU law allows for the introduction of capital controls for public safety or security reasons but not for economic reasons, he said. It is understood that a member state does not need the approval of other European countries to impose restrictions on capital movements between the member state and other EU states. However, approval is required for any restriction on capital movements to any non-EU country. Commission chief José Manuel Barroso said yesterday that an EU banking union with a pan-European deposit guarantee was feasible as soon as next year. The European Central Bank backed this initiative, saying developments in recent weeks underscored the need for concerted efforts by governments to halt the turmoil. The ECB said there was need for a banking union involving tougher euro zone banking supervisions, a European deposit guarantee scheme and minimal risks for taxpayers through adequate bank sector contributions. In a new report, the ECB said such a union would also involve “breaking the link between banks and sovereigns” but did not specify how. This is generally understood to embrace direct European aid for banks without burdening the debt of member states. The Government hoped any such move in the Spanish bailout would create a precedent for Ireland but Germany rejected Spanish pleas to go down that road. Spain’s El Mundo reported the country’s economics minister warned his euro zone counterparts during a teleconference last Saturday that refusal to support Madrid’s demands could bring down Italy. “If you want to force a full rescue of Spain, then get €500 billion ready – and then another €700 billion for Italy, which will have to be rescued after us,” Luis de Guindos reportedly said. The paper also cited text messages to Mr de Guindos in which prime minister Mariano Rajoy urged him to adopt a tough stance in the talks. “Hold out. We are the fourth economic power in Europe. Spain is not Uganda,” Mr Rajoy is reported to have said.

In March alone the country's citizens withdrew from their deposit or transferred to other countries 70 billion euros

Investors are pulling their money out en masse as well - 97 billion euros in the first quarter of this year, representing 10 percent of GDP, which is also a record number. The situation is complicated by the unprecedented unemployment - 25 percent, which rules out a possibility of reaching an agreement between the unions and the government and stimulates the growth of the movement of "dissatisfied." The debt crisis in Spain changed to the economic one, then crisis of trust, and now - bank crisis. Spain's banking system was unregulated, i.e., unaccountable to the government in terms of the credit policy. This led to a diversion of budgetary funds, abuse, accumulation of "bad" loans and bankruptcy. The largest bank in the country, Bankia, on May 25 formally asked for help from the government in the amount of 19 billion euros. The catastrophe is comparable to the collapse of Lehman Brothers in the U.S. in 2008. It is expected that Bankia will be followed by other banks. On May 30 the interest rate on sovereign debt securities of Spain reached 6.7 percent, that is, neared the values ​​that have forced the government of Greece, Ireland and Portugal to turn to Brussels for financial assistance. On the same day, Bankia's President Miguel Fernandez Ordonez, number four in the PSOE (Spanish Socialist Workers' Opposition Party), asked for early resignation because PP has not supported his intention to speak in the Parliament on the issue of bank failures and banking crises. The European Central Bank (ECB) has refused to adopt Raho's plan to recapitalize Bankia both through the old mechanism and through the new European debt securities. The developments suggest that Spain cannot do without the financial assistance of the ECB and the IMF. This "aid" will cost hundreds of billions of euros, which is several times greater than has been granted so far to Ireland, Greece and Portugal combined. Will the EU reserve cope with this volume? According to the calculations by the HSBC agency, assistance to Spain will be provided next year and will reach 450 billion euros, of which 100 billion will go to banks. Edward Hugh, an independent economist from Barcelona, ​​is more pessimistic. According to him, an attempt to save Spain is likely to occur in July in the amount of 500 billion euros, and the "bank recapitalization" will be allocated from 150 to 200 billion euros. He sees the main difficulty in the fact that Spain is too big to let it fall, and too big to save. Meanwhile, Mario Raho, who has been holding the post of Prime Minister only for five months, is mercilessly criticized for his lack of understanding of the catastrophic situation - he does not want to acknowledge his own insolvency and appeal to the EU for help. According to Spanish press reports, at the critical moment he acts hesitant because he does not have any international experience or knowledge in the field of economics, or public confidence. For example, after the collapse of markets on Monday, he held a hurried press conference, and could not explain where the money for recapitalization of Bankia would come from in the face of rising public debt and the policy of austerity measures. In addition, the government and the PP strenuously oppose the discussion of the causes of Bankia bankruptcy in the parliament. Secretary General of the opposition PSOE Alfredo Rubalcaba also remains stubbornly silent. Everything has a simple explanation if you look at those in leadership positions in the savings banks of the country until recently. In most cases, they were representatives of the ruling party or PSOE that was in power earlier. Meanwhile, the newspaper El Pais published a list of people who, condoned by the regional authorities, are directly responsible for the largest bankruptcy of the financial system in Spanish history. The publication accuses them of financing speculative urban projects, the ruinous state construction projects, such as empty airports that fueled corruption schemes, and even distorted accounting. Today, they were allowed to retire and are getting paid millions in bonuses and compensation. Among them was, for example, Iskerda Aurelio, CEO of Bank of Valencia, a subsidiary of Bankia. He received compensation of 14 million euros in pensions and compensation for early retirement. Jose Luis Pego, director of the Novacaixagalicia bank, for the first nine months was paid 18.5 million euros of compensation, of which 7.7 million for the fact that he retired early, the rest - bonuses for "work." Member of the PSOE, the former president of bank Caja Castilla - La Mancha in cahoots with the leaders of the autonomy put his signature on the project to build a completely useless airport at Ciudad Real, spending nine billion of the state money. Some economists on Wall Street have predicted that Spain will come out of the euro area rather than Greece. Matthew Lynn from the British consulting firm "Strategy Economics" believes that Spain has at least six reasons for it. In addition to dubious ones, such as the political independence and great prospects in Latin America, it indicates at least one correct one - it is a strong real economy. Spain is the fourth economy of the Euro zone and provides 12 percent of its total GDP. The share of exports to GDP is 26 percent - this is quite comparable with the UK, France and Italy. In this respect, the rejection of the euro and the transition to the peseta would lead to losses, and it will not be as critical as for example, Portugal, and the real sector will quickly stabilize the country. But the main problem of the country is not Brussels that does not want to save Spanish banks, and not Rahoe who does not want to ask for help. The main problem is the division of Spain into 17 autonomous regions - in fact, states within the country, with their claims to Madrid, overgrown bureaucracy, and ambitions. The autonomies must return 36 billion euros in loans to the budget this year, of which 15-16 billion, as Madrid hopes, will be used to fund it. However, these hopes were dashed in late May when the largest autonomy - industrialized Catalonia - announced that it was no longer able to refinance its debt of 13 billion euros, effectively acknowledging its bankruptcy. Where will Rahoy get the money from? He did not explain, confining to promise to prevent the bankruptcy of the autonomy. But in two years Rahoy must give fiscal sovereignty to the Government of Catalonia, and then it will be not too far to the national sovereignty. In 2015 the Catalan government will hold a referendum on this issue - and then, farewell to Spain.

Spain bails out Bankia, seeks plan for troubled regions

Spain announced a 9-billion-euro ($11 billion) bailout for troubled lender Bankia on Wednesday, while also seeking ways to help its highly indebted regions meet huge refinancing needs that threaten to drag the country deeper into the eurozone crisis. The country's weak banks and overspending regions are at the heart of the European debt crisis due to concerns that expensive bail-outs of ailing lenders and regions could force the country to seek international aid. Losses at Bankia, Spain's fourth largest bank, are central to investor fears that the fragile financial system could become more vulnerable as default rates rise in a recession. Economy Minister Luis de Guindos told a congressional committee that the state would have to put at least 9 billion euros into saving Bankia, which he said would be fully nationalised in the process. At the same time government sources said de Guindos and other top officials were at odds over how to help the country's 17 autonomous regions refinance 36 billion euros in debt that comes due this year. Bankia's new management team will undertake a complete assessment of the lender's capital needs and will present its plan in mid-June, de Guindos said. The government will recapitalise Bankia's parent group BFA using the state-backed bank restructuring fund, the FROB, and then will fund Bankia through a capital increase including preferential shares for existing shareholders, he said. He said the Bankia rescue would include 7.1 billion euros in provisions for losses from bad loans and 1.9 billion euros in capital buffers, as well as address issues flagged by Bankia's auditors. The clean-up of Bankia and BFA, which account for 10 percent of deposits in Spain, would take care of most of the problems in the country's banking system, he said. "I insist BFA-Bankia is a specific case and it's not correct to extrapolate its problems to the rest of the Spanish financial system," he told lawmakers. Bankia is the most exposed of Spain's banks to losses stemming from a 2008 property crash. But economists said the focus had now moved on the banking sector as a whole. "The market has moved beyond Bankia. How much Bankia will get in aid is not going to make a big difference," said Martin van Vliet, senior economist at ING. "The question is now about the long-term solvency of parts of Spain's banking system, especially what is going to happen with mortgage loan default. This concern is not being addressed." NO EXTERNAL AID Prime Minister Mariano Rajoy reiterated on Wednesday that Spain would not seek external funds to bail out its banks. "The government has no interest and no intention in accessing any funds from the European Union or any other organisation," Rajoy said following a meeting with French Prime Minister Francois Hollande on Wednesday. The government has picked Goldman Sachs to value Bankia and consultancies Oliver Wyman and Roland Berger were hired to audit other banks' loan books, as bad loans have risen to their highest in 18 years. Spain has chosen outside auditors to reassure investors and European Union leaders, who were meeting at a summit on Wednesday, that Madrid has the situation under control. A leading banking industry group, the Institute of International Finance (IIF), has said Spain's banks could need another 76 billion euros to cover losses as bad debts might rise as high as 260 billion euros. Economists fear the number of Spaniards defaulting on their mortgages could rise given the country's recession-bound economy and sky-high unemployment of 24 percent. The Spanish benchmark 10-year bond traded at a 6.2 percent yield on Wednesday, not far off the 7 percent level that is seen as unsustainable for a country's finances. REGIONAL DEBTS New budget plans from Spain's 17 autonomous communities revealed that they have 28 billion euros of bank loans coming due this year, along with 8 billion euros of bonds that mature in 2012. Many of the autonomous regions are virtually blocked from financing themselves on public debt markets due to the high rates they would have to pay. Some have seen the credit rating on their debt cut to junk status. Spain's government last week admitted its 2011 public deficit was higher than it had previously reported after three regions revealed higher spending last year than they had earlier reported. Two government sources said the central administration now aimed to put forward a new mechanism to back regions' debt as soon as early June. But, the sources said, de Guindos and Treasury Minister Cristobal Montoro disagreed on the final form the new instrument should take. De Guindos favours a centralised mechanism which would control and issue debt for the regions. Montoro would rather see a less intrusive instrument which would fall under the umbrella of his ministry, possibly based on credit lines from the central government to regions which meet their deficit targets.

Three killed in northern Italy earthquake

Three people have been killed in a 5.9-magnitude earthquake that struck northern Italy near Bologna, according to reports. The quake that struck at just after 4am local time was centred 21.75 miles north-northwest of Bologna at a relatively shallow depth of six miles, the US Geological Survey said. Italian news agency Ansa, citing emergency services, said two people were killed in Sant'Agostino di Ferrara when a ceramics factory collapsed. Another person was killed in Ponte Rodoni do Bondeno. In late January, A 5.4-magnitude quake shook northern Italy. Some office buildings in Milan were evacuated as a precaution and there were scattered reports of falling masonry and cracks in buildings. The tremor was one of the strongest to shake the region, seismologists said. Initial television footage indicated that older buildings had suffered damage. Roofs collapsed, church towers showed cracks and the bricks of some stone walls tumbled into the street during the quake. As dawn broke over the region, residents milled about the streets inspecting the damage. Italy's Sky TG24 showed images of the collapsed ceramics factory in Sant'Agostino di Ferrara where the two workers were reportedly killed. The structure, which appeared to be a hangar of sorts, had twisted metal supports jutting out at odd angles amid the mangled collapsed roof. The quake “was a strong one, and it lasted quite a long time”, said Emilio Bianco, receptionist at Modena's Canalgrande hotel, housed in an ornate 18th century palazzo. The hotel suffered no damage and Modena itself was spared, but guests spilled into the streets as soon as the quake hit, he said. Many people were still awake in the town since it was a “white night”, with shops and restaurants open all night. Museums were supposed to have remained open as well but closed following the bombing of a school in southern Italy that killed one person. The quake epicentre was between the towns of Finale Emilia, San Felice sul Panaro and Sermide, but was felt as far away as Tuscany and northern Alto Adige. The initial quake was followed about an hour later by a 5.1-magnitude aftershock, USGS said. And it was preceded by a 4.1-magnitude tremor. In late January, a 5.4-magnitude quake shook northern Italy. Some office buildings in Milan were evacuated as a precaution and there were scattered reports of falling masonry and cracks in buildings. In 2009, a devastating tremor killed more than 300 people in the central city of L'Aquila.

‘Save euro’ plea to Germans as Spain slumps

BRITAIN yesterday piled pressure on German Chancellor Angela Merkel to save the euro. 6 comments Related Stories PM: Make or break for euro HE to issue plea to Merkel to fork out as only way to stave off meltdown New French Pres gets a soakingFrench warning for CameronSarky poll malarky will leave PM narky David Cameron and Chancellor George Osborne said she must use her financial clout to stop the single currency collapsing. The PM hammered the message home in emergency talks via video-link with Mrs Merkel and French president Francois Hollande. It came as the chaos in Greece spread to Spain — with fears of a run on banks in both countries. Greeks have taken £560million from local banks in the past week. And yesterday Spain’s Bankia bank was forced to deny reports customers had taken £800million out of its coffers in the past seven days. Last night the fears hit Santander UK as credit rating agency Moody’s downgraded the bank along with its Spanish owner and 15 other Spanish banks. And credit agency Fitch downgraded Greece on fears it will be booted out of the Eurozone. Earlier, Mr Osborne said the Treasury had drawn up emergency plans to cope with Greece quitting the euro. He told MPs: “Britain will be prepared for whatever comes.” Mr Cameron had warned countries such as Greece and Spain can only survive if richer countries did more to “share the burden of adjustment”. He also backed Eurobonds to raise billions to prop up crisis-hit countries — a proposal that would have to be bankrolled by Berlin. After the video chat, a Downing Street spokesman said the PM urged the eurozone to take “decisive action to ensure financial stability and prevent contagion”.

Spain’s banking crisis reached Britain’s high streets last night when the credit rating of Santander UK was cut.

In a sweeping reassessment, ratings agency Moody’s announced in Madrid that it is downgrading 16 Spanish banks because it could not be sure of the ability of the country’s government to provide the necessary support.

Santander UK was among the banks highlighted after the ratings agency took aim at its parent Banco Santander, based in Spain. 

The Spanish banking crisis has hit the British high street, with the news that Santander has had its credit rating cut

Santander is one of the biggest players in UK retail banking, having taken over the former Abbey National, Alliance & Leicester, Bradford & Bingley and most recently the English branches of the Royal Bank of Scotland.

The new lower A2 credit rating is certain to be a cause of anxiety to Santander UK’s millions of British customers. 

Nevertheless, they can be confident that their deposits up to £85,000 are guaranteed by the British government should there be a loss of confidence.

Brink's Mat the reason that Great Train Robber was shot dead in Marbella

The Brink’s-Mat curse even touched on the Great Train Robbery gang of 1963. One of them, Charlie Wilson, found himself in trouble when £3 million of Brink’s-Mat investors’ money went missing in a drug deal. In April 1990, he paid the price when a young British hood knocked on the front door of his hacienda north of Marbella and shot Wilson and his pet husky dog before coolly riding off down the hill on a yellow bicycle.

British tourist falls to her death from hotel balcony in Magalluf

23 year old British tourist has fallen to her death from the third floor balcony of her hotel in Magalluf, Mallorca. Emergency sources said it happened at 4.25am Saturday morning at the Hotel Teix in Calle Pinada. Local police and emergency health services went to scene. After 20 minutes of an attempt to re-animate her heart, the woman was pronounced dead. Online descriptions for the Hotel say it is the best place to stay of you are looking for non-stop partying, adding it not suitable for families.

Reopen Madeleine case, police urge

Scotland Yard has urged Portuguese authorities to reopen the search for Madeleine McCann as detectives said there are 195 potential leads to finding her alive. The detective leading the Metropolitan Police review said the case can still be solved before officers released a picture of what she might now look like as a nine-year-old. Detective Chief Inspector Andy Redwood said he believes her disappearance was a stranger abduction, as he said there are 195 "investigative opportunities". Police refused to say what evidence they had uncovered to suggest Madeleine is alive. Mr Redwood confirmed that his team of more than 30 officers involved in the case had been out to Portugal seven times, including a visit to the family's holiday flat in Praia da Luz. It will be five years ago next week since the three-year-old went missing as her parents, Kate and Gerry McCann, dined with friends nearby. A spokesman for the McCanns said the family was pleased with the image. Mr Redwood said his 37 officers had dealt with 40,000 pieces of information but the "primacy still sits in Portugal" in the attempt to find her. Commander Simon Foy said: "Most significantly, the message we want to bring to you is that, on the evidence, there is a possibility that she is alive and we desperately need your help today to appeal directly to the public for information to support our investigation." Mr Redwood said "evidence that she is alive stems from the forensic view of the timeline" that there was the opportunity for her to be taken. Investigations show "there do appear to be gaps", he added. Detectives in Portugal are also understood to want the case reopened but must gain judicial approval via the courts.

Insecure websites to be named and shamed after checks

Companies that do not do enough to keep their websites secure are to be named and shamed to help improve security. The list of good and bad sites will be published regularly by the non-profit Trustworthy Internet Movement (TIM). A survey carried out to launch the group found that more than 52% of sites tested were using versions of security protocols known to be compromised. The group will test websites to see how well they have implemented basic security software. Security fundamentals The group has been set up by security experts and entrepreneurs frustrated by the slow pace of improvements in online safety. "We want to stimulate some initiatives and get something done," said TIM's founder Philippe Courtot, serial entrepreneur and chief executive of security firm Qualys. He has bankrolled the group with his own money. TIM has initially focused on a widely used technology known as the Secure Sockets Layer (SSL). Experts recruited to help with the initiative include SSL's inventor Dr Taher Elgamal; "white hat" hacker Moxie Marlinspike who has written extensively about attacking the protocol; and Michael Barrett, chief security officer at Paypal. Continue reading the main story “ Start Quote Everyone is now going to be able to see who has a good grade and who has a bad grade” Philippe Courtot Many websites use SSL to encrypt communications between them and their users. It is used to protect credit card numbers and other valuable data as it travels across the web. "SSL is one of the fundamental parts of the internet," said Mr Courtot. "It's what makes it trustworthy and right now it's not as secure as you think." Compromised certificates TIM plans a two-pronged attack on SSL. The first part would be to run automated tools against websites to test how well they had implemented SSL, said Mr Courtot. "We'll be making it public," he added. "Everyone is now going to be able to see who has a good grade and who has a bad grade." Early tests suggest that about 52% of sites checked ran a version of SSL known to be compromised. Companies who have done a bad job will be encouraged to improve and upgrade their implementations so it gets safer to use those sites. The second part of the initiative concerns the running of the bodies, known as certificate authorities, which guarantee that a website is what it claims to be. TIM said it would work with governments, industry bodies and companies to check that CAs are well run and had not been compromised. "It's a much more complex problem," said Mr Courtot. In 2011, two certificate authorities, DigiNotar and GlobalSign were found to have been compromised. In some cases this meant attackers eavesdropped on what should have been a secure communications channel. Steve Durbin, global vice president of the Information Security Forum which represents security specialists working in large corporations, said many of its members took responsibility for making sure sites were secure. "You cannot just say 'buyer beware'," he said. "That's not good enough anymore. They have a real a duty of care." He said corporations were also increasingly conscious of their reputation for providing safe and secure services to customers. Data breaches, hack attacks and poor security were all likely to hit share prices and could mean they lose customers, he noted.

Anti-depressants likely do more harm than good, study suggests

Commonly prescribed anti-depressants appear to be doing patients more harm than good, say researchers who have published a paper examining the impact of the medications on the entire body. See Also: Health & Medicine Pharmacology Birth Defects Mental Health Research Mind & Brain Depression Disorders and Syndromes Psychiatry Reference COX-2 inhibitor Psychoactive drug Seasonal affective disorder Anti-obesity drug "We need to be much more cautious about the widespread use of these drugs," says Paul Andrews, an evolutionary biologist at McMaster University and lead author of the article, published recently in the online journal Frontiers in Psychology. "It's important because millions of people are prescribed anti-depressants each year, and the conventional wisdom about these drugs is that they're safe and effective." Andrews and his colleagues examined previous patient studies into the effects of anti-depressants and determined that the benefits of most anti-depressants, even taken at their best, compare poorly to the risks, which include premature death in elderly patients. Anti-depressants are designed to relieve the symptoms of depression by increasing the levels of serotonin in the brain, where it regulates mood. The vast majority of serotonin that the body produces, though, is used for other purposes, including digestion, forming blood clots at wound sites, reproduction and development. What the researchers found is that anti-depressants have negative health effects on all processes normally regulated by serotonin. The findings include these elevated risks: developmental problems in infants problems with sexual stimulation and function and sperm development in adults digestive problems such as diarrhea, constipation, indigestion and bloating abnormal bleeding and stroke in the elderly The authors reviewed three recent studies showing that elderly anti-depressant users are more likely to die than non-users, even after taking other important variables into account. The higher death rates indicate that the overall effect of these drugs on the body is more harmful than beneficial. "Serotonin is an ancient chemical. It's intimately regulating many different processes, and when you interfere with these things you can expect, from an evolutionary perspective, that it's going to cause some harm," Andrews says. Millions of people are prescribed anti-depressants every year, and while the conclusions may seem surprising, Andrews says much of the evidence has long been apparent and available. "The thing that's been missing in the debates about anti-depressants is an overall assessment of all these negative effects relative to their potential beneficial effects," he says. "Most of this evidence has been out there for years and nobody has been looking at this basic issue." In previous research, Andrews and his colleagues had questioned the effectiveness of anti-depressants even for their prescribed function, finding that patients were more likely to suffer relapse after going off their medications as their brains worked to re-establish equilibrium. With even the intended function of anti-depressants in question, Andrews says it is important to look critically at their continuing use. "It could change the way we think about such major pharmaceutical drugs," he says. "You've got a minimal benefit, a laundry list of negative effects -- some small, some rare and some not so rare. The issue is: does the list of negative effects outweigh the minimal benefit?"

Madeleine McCann, the British girl who went missing while on holiday in Portugal half a decade ago, could still be alive, Scotland Yard said on Wednesday.

Madeleine McCann as she might look aged 9  Photo: Teri Blythe

Detectives released a new “age progression” image of the toddler, which they said showed what she would look like today at the age of nine.

On Wednesday, Britain’s biggest police force said that as a result of evidence uncovered during a review “they now believe there is a possibility Madeleine is still alive”.

Officers have so far identified nearly 200 new items for investigation within historic material and are also “developing what they believe to be genuinely new material”.

Scotland Yard urged Portuguese authorities to reopen the search for her amid the new "investigative opportunities".

Police said the image, created ahead of what would have been her ninth birthday on May 12, had been created in “close collaboration with the family”.

Britons living overseas defrauded 43 million pounds in benefit fraud in 2011

The British Secretary of State for Work and Pensions, Iain Duncan Smith, has been visiting the Department of Work and Pensions benefits and healthcare team in Madrid. He warned Britons living abroad not to break the strict rules on what benefits they can and cannot claim. People who are pretending to live in the UK so they can collect benefits, but in fact are living overseas cost the British taxpayer 43 million pounds last year. Most of the reports of such benefit fraud came from Spain. Iain Duncan Smith commented, “We are determined to clamp down on benefit fraud abroad, which cost the British taxpayer around £43 million last year. This money should be going to the people who need it most and not lining the pockets of criminals sunning themselves overseas. The vast majority of British people overseas are law abiding, but fraudulently claiming benefits while living abroad is a crime and we are committed to putting a stop to it.” He also encouraged Britons to use the dedicated Spanish hotline to report benefit thieves. 900 554 440 or you report a benefit fraud here. The hotline has resulted in 100 people being sanctioned or prosecuted, and 134 more cases are currently under investigation. 3.1 million pounds in over payments of benefit have been identified and will be reclaimed. Source – UK in Spain - http://ukinspain.fco.gov.uk/en/news/?view=News&id=754530182 Duncan Smith made the most of his visit to Madrid and took the chance to meet with Health Minister, Ana Mato, and the Mayor of Madrid, Ana Botella. They discussed the response to the crisis with Duncan Smith calling for an end to the culture of ‘unemployment and dependency’, increasing the control on public spending and eliminating ‘the subsidies which don’t resolve problems because in some cases ‘they trap the poor’.

Anti-Corruption prosecutors to be strengthened in Málaga

 

The State Attorney General, Eduardo Torres-Dulce, has said that there are plans to designate ‘one or two prosecutors’ more to the specialist Anti-Corruption section in the province of Málaga. He made the comment at an event where Juan Carlos López Caballero took possession as Chief Prosecutor for Málaga, a job which he was sharing with his post as Delegate from the Anti-Corruption Prosecutor, where three prosecutors work. There have been complaints from prosecutors that only 8% of civil servants who work for the administration of justice do so in the prosecutors’ office, a number described as ‘totally insufficient’.

Health Minister announces crackdown on foreigners using the Spanish Health Service

The cabinet on Friday decided to crack down on foreigners using the Spanish Health Service as part of an additional 7 billion € of cuts. They intend to toughen the conditions for inclusion on the Padrón census. Minister for Health, Ana Mato, said ‘We are going to end the abuses committed by some foreigners’. She is going to change the Ley de Extranjería which intends to put a limit to the so-called ‘health tourism’, which has seen family members of foreign residents to come to Spain ‘exclusively’ to receive health attention. Ana Mato insisted that from now it will not be so easy to come to Spain, sign the Padrón census, and obtain a health card, as it has been. ‘Just getting on the Padrón they all had the right to the health card’, said the Minister. ‘Now there will be a series of additional requirements when the Padrón is issued’. She said to guarantee the universality of the Health Service ‘for all the Spaniards’ it was necessary to stop the illegal and undue use which some foreigners have been making of this service. On Thursday the Minister met with the regions and they agreed on a new article which will ‘explicitly prohibit a person moving regions in search of health attention'. The Minister considers these measures will do away with health tourism and save 1 billion €. Ana Mato also said that she was going to revise some international conventions on the matter, given that ‘many’ countries do not repay the money they owe Spain for the health attention given here to their citizens. Among the other measures approved, the end of paying for some medicaments ‘with little therapeutic value’. A list of included medicines accepted nationally is to be prepared. The Minister said ‘We all have to collaborate with those who having a worse time’.

Ryanair threatens surcharge on flights to Spain

 

Millions of its passengers – who have already booked and paid for their flights in full – may now be asked to pay an extra fee upon departure, or be told they are not allowed to board. The airline sent an email to customers this week warning them of the backdated fare. “We may be forced to debit passengers for any government imposed increases in airport charges prior to your travel date,” its message read. “If any such tax, fee or charge is introduced or increased after your reservation has been made you will be obliged to pay it (or any increase) prior to departure”.

Mike Tyson has for the first time revealed his lowest point ever in a searingly candid interview.

Once known as the ‘baddest man on the planet’, his life has taken more than a few dark twists and turns.

But now Mike Tyson has for the first time revealed his lowest point ever in a searingly candid interview.

The former heavyweight champion said that back in 2009 he was in a hotel room with seven prostitutes, a morphine drip in his arm, a pile of cocaine and a bottle of cognac when he began to feel paranoid.

Candid: The former world champion gave his most honest interview yet - revealing the drug-fuelled night that made him turn his life around and get clean and sober

Convinced the women were trying to steal from him he started beating them up and threw them out - to stop them from 'taking his soul'.

 

 Tyson said: ‘That’s when I realised it wasn’t just demons - it was the devil himself.

‘It was the lowest point of a very low life, but it was my own knockout punch to clean up life, get whole, get well - and I haven’t done anything in three years now. 

‘I’m clean. I’m sober.’

Tyson’s recently swapped the boxing ring for the cabaret stage in a six night comedy show at the MGM Grand Casino in Las Vegas, where some of his biggest fights took place.

World Champion: Mike Tyson lands the knockout punch to the jaw of challenger Larry Holmes during fourth round of the World Heavyweight Championship in Atlantic City 1988

 

In an interview with Las Vegas Weekly to promote the show, he was asked to talk about the moment he realised he had to turn his life around.

Tyson, 45 said: ‘Laying in bed in a hotel room - I try never to be alone, even if it’s a prostitute, a dog. 

‘This is really dark. I am in my hotel suite, I’ve got seven women there, and I have a morphine drip, and I had my cocaine, and I had my (Viagra like pill) Cialis, I had my marijuana, I had the Hennessy, and I am at my lowest point because I got paranoid and I thought these women were trying to rob me and set me up. 

‘I started beating them. I was in a dark place. There was a purpose, though, because I didn’t want to give them any more of my soul.

‘So this is my devil, this is where I am, I am locked up alone. There is nobody there telling me that I’m doing too much. 

Troubled: Tyson's first marriage to actress Robin Givens fell apart amid allegations of him being violent - he is now married for the third time

 

Mug shot: In 1992 Tyson was jailed for raping Desiree Washington - a beauty pageant contestant - he was released from prison after three years

‘That is the devil, he won. I kicked them all out. So that was my lowest point. Oh, man. I am just very grateful to be here - my heart should have blown apart. I was sweating wide awake. No more cocaine. No more. Three years clean.’

In his turbulent life Tyson has been married three times, fathered eight children and became the youngest heavyweight champion the world has ever seen at just 20.

But fame ruined him and his troubled upbringing - his mother was a prostitute and he never knew his pimp father - came back to haunt him.

In the interview he claimed to have earned $300million in winnings but admitted that he was so bad with money he was ‘forced to live paycheck to paycheck’.

In 1992, three years after his first marriage to actress Robin Givens fell apart, he was jailed for six years for raping Desiree Washington, a contestant in the Miss Black America pageant.

Released having served three years, he fought Evander Holyfield in the fight that became one of the most notorious bouts in boxing history when he bit part of his opponent’s ear off.

Reflecting on his life Tyson told Las Vegas Weekly that he was now the happiest he has ever been, and is just trying to be a good husband to his third wife, and a good father to his children.

Tyson said: ‘In order to wear the crown, you have to have a miserable life, and that is the one that inherits the crown. 

‘I don’t know, you have to go from the worst to reach the best. I’m just that extreme type of person. That is who I am, the guy that has no limits.’

EU condemns Repsol state seizure

 The European Parliament has passed a resolution condemning a nationalisation that has strained relations between Spain and Argentina. Argentina has nationalised YPF, wiping out the Spanish firm Repsol's controlling-stake in the oil firm. The resolution asks the European Commission to consider a "partial suspension" of tariffs that benefit Argentine exports into the EU. Shares in Repsol has another decline, falling 2.3% on Friday. Over the week, Repsol stock has lost almost a fifth of its value. MEPs in the European Parliament said the institution "deplores" the decision taken by Argentina and describes it as an "attack on the exercise of free enterprise". Decisions such as that taken by the Argentine authorities "can put a strain on the climate of understanding and friendship needed to reach" a trade agreement between a South American bloc and the EU, it said. The resolution, which is non-binding, received 458 votes in favour, 71 against and 16 abstentions. 'Not valid' It also emerged that Repsol may be obliged to buy a minority shareholder's YPF stake if it ever lost majority control, which Repsol denied. Twenty-five percent of YPF is owned by Argentina's Eskenazi family through its firm, Peterson. Continue reading the main story Nationalising YPF Spain's Repsol has hitherto owned 57.4% of shares with 25.5% belonging to Argentina's Petersen, 0.02% to the Argentine government and 17% traded on stock exchanges The Argentine government proposes to seize 51% of the shares, all of which will be taken from Repsol's stake, leaving the Spanish firm with 6.4% The expropriated shares will in turn be divided between the Argentine government and provincial governors Following the expropriation, Petersen will retain its 25.5% stake and 17% of the shares will continue to be traded Argentina's risky energy seizure According to regulator filings of a 2008 agreement, Repsol must "maintain directly or indirectly through controlled companies an ownership interest greater than or equal to 50.1%". If it does not, Repsol is obliged to buy back the loans used to secure the Eskenazis' shares. But Repsol told the BBC that the expropriation of its stake in YPF had invalidated the agreement. "The agreement is not valid under Spanish law in these conditions," said Kristian Rix, a Repsol spokesman. "The law is unequivocal, there is no debate." Trade war brewing? Spain has threatened retaliation against Argentina over the forced nationalisation of oil firm YPF, raising the prospects of a trade war between the nations. Spanish Trade Secretary Jaime Garcia Legaz said the European Union would intervene over Argentina's seizure of YPF. Argentina is taking over 51% of YPF, wiping out Repsol's 57.4% majority stake. The move has wide support in Argentina but has provoked outrage in Spain. Spain's Foreign Minister Jose Manuel Garcia-Margallo said US Secretary of State Hillary Clinton had also offered support. Repsol has said it wants around $10bn (£6.2bn) for its stake in YPF, but Argentina has said it does not accept that valuation. YPF, Argentina's biggest oil company, was privatised in 1993. Last year it announced huge new finds of shale oil and gas.

France and Germany want to suspend the Shengen Agreement

They say they want a temporary suspension while the crisis continues. Spain will being introducing border restrictions during the European Central Bank meeting in Barcelona at the start of May.Angela Merkel and Nicolás Sarkozy - The Interior Ministers of France and Germany have written a joint letter in which they call for the reform of, and ‘temporary suspension’ of the Schengen agreement which allows for the free movement between most member states of the EU. They say the change is necessary ‘to control the massive flow of immigrants’. The call comes just ahead of the 25th anniversary of the treaty this coming Monday, although many countries signed up in March 1995. France and Germany consider that a ‘temporary suspension’ is needed during the crisis, and Paris and Berlin speak of ‘provisional’ closure of frontiers, and only when a country in the Schengen space cannot control the flow of immigrants. They say they will give the details to their European partners at the next conference. Meanwhile Spain has announced the suspension of the Schengen Treaty and the re-establishing of frontier controls with France ahead of the European Central Bank meeting which is to be held in Barcelona on May 3. It has not yet been decided how long the border restriction will remain in place, but say it will allow the authorities to act if there is ‘a serious threat to public order or interior security’. The measure will only affect the frontiers between Spain and France from the Basque Country to Cataluña. Reports indicate that it was the Catalan Government to step up the controls in the face of possible disturbances and the arrival of anti-system protestors from other countries in Europe.

Phone data shows romance 'driven by women'

 

A study of mobile phone calls suggests that women call their spouse more than any other person. That changes as their daughters become old enough to have children, after which they become the most important person in their lives. The study has been published in the journal Scientific Reports. It also shows that men call their spouse most often for the first seven years of their relationship. They then shift their focus to other friends. The results come from an analysis of the texts of mobile phone calls of three million people. According to the study's co-author, Professor Robin Dunbar of Oxford University, UK, the investigation shows that pair-bonding is much more important to women than men. "It's the first really strong evidence that romantic relationships are driven by women," he told BBC News. "It's they who make the decision and once they have made their mind up, they just go for the poor bloke until he keels over and gives in!" But the data shows that women start to switch the preference of their best friend from about the mid-30s, and by the age of 45 a woman of a generation younger becomes the "new best friend", according to Professor Dunbar. Continue reading the main story “ Start Quote Human societies are moving back to a matriarchy” Prof Robin Dunbar Oxford University "What seems to happen is that women push the 'old man' out to become their second best friend, and he gets called much less often and all her attention is focussed on her daughters just at the point at which you are likely to see grandchildren arriving," he says. Prof Dunbar also claims that the findings suggest that human societies are moving away from a patriarchy back to a matriarchy. The aim of the project was to find out how close, intimate relationships vary over a lifetime. This kind of anthropological study is normally very difficult to do because it is hard for researchers to get such a big picture of people's lives. But by looking at an at an extremely large mobile phone database, they were able to track these changes extremely accurately. They had access to the age and sex of the callers, who between them made three billion calls and half a billion texts over a period of seven months. Intensely focussed The team wanted to find out how the gender preference of best friends, as defined by the frequency of the calling, changed over the course of a lifetime and differed between men and women. They found that men tend to choose a woman the same age as themselves - which the researchers presumed to be their girlfriend or wife - as a best friend much later in life than women do, and for a much shorter time. This occurs when they are in their early-30s, possibly during courtship, and stops after seven years or so. Women, however, choose a man of a similar age to be their best friend from the age of 20. He remains for about 15 years, after which time he's replaced by a daughter. The pendulum between the two sexes is swinging back towards women, says Prof Dunbar The researchers say that a woman's social world is intensely focussed a on one individual and will shift as a result of reproductive interests from being the mate to children and grandchildren. According to Prof Dunbar, the data suggests that "at root the important relationships are those between women and not those between men". "Men's relationships are too casual. They often function at a high level in a political sense, of course; but at the end of the day, the structure of society is driven by women, which is exactly what we see in primates," he explains. Many anthropologists argue that most human societies are patriarchal on the basis that in most communities men stay where they are born whereas the wives move. But Professor Dunbar and his colleagues are arguing that this only occurs in agriculturally based societies. "If you look at hunter-gatherers and you look at modern humans in modern post-industrial societies, we are much more matriarchal. It's almost as if the pendulum between the two sexes, power-wise, is swinging (back) as we move away from agriculture toward a knowledge-based economy," he says.