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Spain's PM Mariano Rajoy pledges to battle on Spain's PM Mariano Rajoy pledges to battle on
(35 minutes later)
Spanish PM Mariano Rajoy has fiercely denied corruption allegations, pledging that pledged Spain will see off its worst financial crisis in recent years. Spanish PM Mariano Rajoy has fiercely denied corruption allegations, pledging that Spain will see off its worst financial crisis in recent years.
Mr Rajoy said his Popular Party was committed to reforms that would steer Spain away from the financial crisis. He said his Popular Party was committed to reforms that would steer Spain away from the financial crisis.
He rejected opposition calls for his resignation after El Pais published images of ledgers showing secret payments to PP members. Mr Rajoy rejected opposition calls for his resignation after El Pais published images of documents allegedly showing secret payments to PP members.
Mr Rajoy said the claims were "totally false". He denies receiving payments. He said the claims were "totally false" and denied receiving illegal money.
Speaking alongside German Chancellor Angela Merkel in Berlin, Mr Rajoy said his government remained strong and would overcome the accusations, which have sparked protests and an online petition for his resignation signed by 74,000 people.Speaking alongside German Chancellor Angela Merkel in Berlin, Mr Rajoy said his government remained strong and would overcome the accusations, which have sparked protests and an online petition for his resignation signed by 74,000 people.
Mrs Merkel said Germany would support him in his efforts. "The government is stable. The PP has a majority," Mr Rajoy said. "It's carrying out its agenda based on reforms."
Mrs Merkel said Germany would support the Spanish government's efforts.
"I have the impression that the whole Spanish government is working to drive down unemployment, to push through structural reforms," she said.
But Spain's benchmark IBEX share index dropped 2.86% late on Monday amid worries about the corruption scandal and its potential implications.
Resignation unlikelyResignation unlikely
The central claim is that documents published by El Pais are a list of undeclared or secret cash payments linked to senior PP members.The central claim is that documents published by El Pais are a list of undeclared or secret cash payments linked to senior PP members.
Until 2007, Spanish political parties were allowed to receive anonymous donations.
El Pais is adamant the ledgers, dating from 1990 to 2008, were written by the party's former treasurer, Luis Barcenas who stepped down after being implicated in a separate, high-profile corruption case.El Pais is adamant the ledgers, dating from 1990 to 2008, were written by the party's former treasurer, Luis Barcenas who stepped down after being implicated in a separate, high-profile corruption case.
Mariano Rajoy's name is written a number of times in the documents. Alongside his name are numbers totalling 25,200 euros for each year, from 1999 to 2008.Mariano Rajoy's name is written a number of times in the documents. Alongside his name are numbers totalling 25,200 euros for each year, from 1999 to 2008.
On Saturday, two days after the documents were published, the prime minister publicly denied ever having received any secret payments.On Saturday, two days after the documents were published, the prime minister publicly denied ever having received any secret payments.
He said the allegations against him and his party were false.He said the allegations against him and his party were false.
The PP has said it will take legal action against those responsible for what it says is a smear campaign, while announcing an internal audit of its finances. Spain's chief prosecutor has said there could be enough evidence to investigate the allegations. but the PP has said it will take legal action against those responsible for what it says is a smear campaign, while announcing an internal audit of its finances.
The leader of Spain's main opposition party, Alfredo Perez Rubalcaba, has called for the prime minister to resign, but the BBC's Tom Burridge in Madrid says that as things stand that looks unlikely. The prime minister has said he will publish his earnings online.The leader of Spain's main opposition party, Alfredo Perez Rubalcaba, has called for the prime minister to resign, but the BBC's Tom Burridge in Madrid says that as things stand that looks unlikely. The prime minister has said he will publish his earnings online.
Spain's chief prosecutor has said there could be enough evidence to investigate the allegations. Spaniards have been asked to accept painful austerity measures as the government battles to avoid an international bailout. Meanwhile, the unemployment rate has reached a record 26%.
Demonstrators took to the streets in Madrid, Barcelona and Seville on Saturday evening calling on Mr Rajoy to step down, with clashes with police in the capital.