Mariano Rajoy

Can Spain’s scandal-plagued government survive?
Spain’s prime minister, Mariano Rajoy, and his Popular Party are embroiled in a scandal that threatens to bring down the government. The flare-up in the long-rumbling scandal comes at a bad time for Spain, which continues to struggle to revive an economy where unemployment is around 20 per cent. Tobias Buck, Madrid bureau chief, and Tony Barber, Europe editor, join Gideon Rachman to discuss the crisis.

David Gardner

Protesters outside the PP HQ (Getty)

Things are not looking good for Mariano Rajoy, Spain’s prime minister. Luis Bárcenas, the treasurer of his right-wing Partido Popular for 20 years until 2009 who is at the centre of a series of interlinked illegal party financing scandals, was feared to be a ticking bomb. On Monday he started ticking very loudly indeed.

Giving evidence to an investigating judge on an alleged multi-million euro slush fund, Mr Bárcenas confirmed the existence of covert corporate donations and off-the-books cash payments to senior party figures. Leaked photocopies of the former treasurer’s secret accounts were published by the left-liberal El País newspaper on January 31. On July 7, El Mundo, its conservative rival, published a patchy interview with Mr Bárcenas, jailed last month in case he fled the country.

In the interview, Mr Bárcenas for the first time confirmed the existence of the secret ledgers; affirmed that the PP had been financing itself illegally for 20 years; and that the totality of the documents in his possession could bring down the government – a thinly veiled threat presumably aimed at trying to get Mr Rajoy to intervene in the judicial process. Read more

By Gideon Rachman
Travelling between Madrid and Barcelona on a recent weekday afternoon, I wandered into the first-class section of the train. There was only one passenger, snoozing on the black leather seats – and he turned out to be the conductor, who looked up startled at the sound of an intruder.

 Read more

Today’s reading recommendations from around the world.  Read more

Here’s some thought-provoking material to start off your week:

Tony Barber

Esperanza Aguirre

Will the Spanish government request a European bailout? Will Catalonia secede from Spain? These are burning questions, but on Tuesday morning a different political topic is on the minds of many madrileños.

Esperanza Aguirre, the head of the Madrid regional government and one of the most influential figures in the Partido Popular, Spain’s ruling centre-right party, abruptly resigned from her post on Monday. She said she was withdrawing from the front line of politics “for personal reasons”. Read more

Here are the pieces that got us chatting this morning: