Spain takes legal action against Spanair

 

Spain's government has launched legal action against the now-defunct airline Spanair for allegedly violating the country's aviation regulations by suddenly ceasing operations, a minister said Saturday. An estimated 22,000 passengers who had booked seats on more than 220 canceled flights have been left looking for alternative arrangements and instructions on how to seek reimbursements. Spanair, owned by a consortium based in the northeastern region of Catalonia, shut down its operations late Friday because of a lack of funding. The legal proceedings begun by Spain's government could lead to Spanair being fined euro9 million ($11.8 million) for two "serious infringements" of aviation security legislation, Development Minister Ana Pastor said. The alleged infractions related to obligations linked to continued service and passenger protection. Chairman Ferran Soriano said the airline had failed to attract inward investment and consequently the regional government of northeastern Catalonia took the decision to stop providing funds. Spanair, whose hub was Barcelona airport, employed around 2,000 people and used the services of about 1,200 ground staff. Spanair's financial woes were exacerbated by a 2008 crash that killed 154 people. Eighteen people survived what was Spain's worst aviation disaster in 25 years. The airline, which also ran a commuter service between Madrid and Barcelona, was in trouble financially before Spanair Flight JK5022 -- an MD-82 jet -- crashed on takeoff on Aug. 20, 2008 as it tried to leave Madrid bound for the Canary Islands. In 2010 Spanair, which was Spain's No. 4 airline, reported an operating loss of euro115 million ($151.2 million) and had survived thanks to finance provided by the Catalan government and some private investors. The Catalan government cited the "current economic climate" and "European legislation concerning competition" as the major factors influencing its decision. In Brussels, the European Low Fares Airline Association said those of its members flying overlapping routes with Spanair would offer specially discounted fares to enable stranded passengers to return home. Offers are subject to seat availability, said the organization of budget airlines -- which includes Ryanair and EasyJet. The association's secretary-general, John Hanlon, said in a statement the aim was to assist Spanair passengers who were experiencing difficulties with travel plans. National carrier Iberia Spanish Airlines SA said it had also offered to help.

Pilot Strike Affects Scores Of Travelers

 

Ten thousands travelers were left stranded at Spanish airports Friday due to a new strike by pilots of Iberia, the flag carrier of Spain. The strike, part of protest activities that started on Wednesday against the airline’s plan launch a branch for low-cost flights, forced rescheduling 93 out of 277 domestic and international flights, according to a statement by the company. The company affirmed that its new branch “Iberia Express” would affect neither the working conditions or the pay of pilots. The branch, meant to cover the costs of short and medium routes, would generate more revenues and create new jobs, it added. Meanwhile, the airline’s pilot association said it would stage another strike on Monday unless their employer scrapped the low-cost flight plan which would turn the company into a mere provider of cheap service. The pilots staged similar strikes on December 18 and 29, 2011, and on January 9 and 11, 2012, thus forcing some 55,000 passengers of 422 Iberia flights to find alternatives to airline.

Spain's 4th largest airliner goes broke

 

Spain's fourth largest airliner, Spanair, has stopped operations after failing to seal a last minute deal aimed at rescuing the company from financial bankruptcy. Spanair ceased operations on Friday night after failing to negotiate a deal with Qatar Airways who sought to buy a stake in the airline, according to the Catalan regional government in Spain. Over 3,500 employees have lost their jobs as a result of the decision. Moreover, at least 22,000 passengers have been affected as 380 domestic and international flights have been cancelled this weekend alone. Experts report that Spanish regional governments which hold a controlling stake in Spanair have been under pressure to cut costs to help the central government reach budget cut goals this year. Spanair has tried for some years to compete with low-cost carriers operating in the country. Since the economic crisis in Europe began, Persian Gulf oil-producing states have been investing in eurozone companies. There are fears that more delays in resolving the eurozone debt crisis, which began in Greece in late 2009 and infected Italy, Spain and France last year, could push not only Europe but also much of the rest of the developed world back into recession.

Thousands of passengers faced massive travel disruptions across Spain

 

Thousands of passengers faced massive travel disruptions across Spain on Saturday after domestic carrier Spanair cancelled all of its flights Friday night and prepared to file for bankruptcy. The abrupt collapse of the Barcelona-based carrier took place shortly after Qatar Airways walked away from talks to take over the money-losing airline after months of negotiations. "Due to a lack of financial visibility for the coming months, the company has had no option but to cease flying out of a duty of care for the safety of its operation and the well being of all concerned," Spanair said in a statement late Friday. "The appropriate next steps will be taken as soon as possible." More than 200 Spanair flights have been cancelled, affecting over 22,000 passengers. Spain's Public Works Minister Ana Pastor said on Saturday that the government may slap Spanair with about EUR9 million in fines and cancel its airline license due to the sudden cancellation of flights and failure to assist passengers. The Public Works ministry, which supervises the transport sector, said Spanair is required to assist customers and reimburse cancelled tickets. Many affected passengers complained on local television stations that Spanair was struggling to provide flight alternatives or even return the luggage from passengers who checked in shortly before all flights were abruptly cancelled on Friday night. A Spanair spokeswoman declined to comment on specific complaints from customers. The company said it has set up a customer service hotline, while Spain's airport authority AENA is providing passenger support services at the country's main airports. Flagship carrier Iberia Lineas Aereas de Espana SA said it was accepting affected Spanair passengers in its flights and offering lower airfares. Other domestic carriers are also assisting Spanair customers. "The Company would like to apologize to everyone affected by this announcement and thanks the aviation authorities for their help and support," as well as other airlines that assisting affected passengers, Spanair said on Friday night. A company spokesman didn't immediately return calls seeking comment on Saturday. The government of Spain's Catalonia region is Spanair's main shareholder with a stake of 85.6%, while Spanair's former owner, Scandinavian airline SAS AB (SAS.SK), holds a stake of 10.9% of the troubled carrier. SAS issued a profit warning on Friday night. It said that following the decision of Spanair's board to apply for bankruptcy, it will write down EUR165 million of the outstanding debt and receivables on Spanair and set aside another EUR28 million in guarantees and costs linked to Spanair's bankruptcy. "SAS Group will follow customary procedures as a creditor in the upcoming bankruptcy process," the Scandinavian company said in a press release late Friday, adding that it had already reduced the value of its shareholding in Spanair to zero. Created in 1986 with SAS as top shareholder, Spanair was purchased in 2009 by a group of local investors led by Catalonia's regional government, moving Spanair's headquarters from the Balearic Islands to Barcelona. The company, which has more than 2,000 employees, struggled financially in recent years, particularly after the crash of one of its aircraft during takeoff in Madrid almost four years ago, killing more than 150 passengers. As the economic crisis intensified in Spain, the Catalan government sought to keep the Barcelona-based airline afloat as part of an effort to develop Barcelona's El Prat Airport as a regional hub. However, it decided months ago that it couldn't keep supporting the company at a time when the government itself is facing serious financial headwinds, with the Spanish economy mired in its worst crisis in decades amid a deep property bust. Catalonia's financial support also sparked complaints from rivals on grounds that Spanair was getting unfair government support, in violation of European Union rules. In addition to an unprecedented economic crisis with record high unemployment rates, Spanair faced cutthroat competition from discount carriers and the expansion of Spain's high-speed rail network.

Recession causes 2,000 heart attack deaths

 

Since 2002 the number of people dying from heart attacks in England has dropped by half, the study conducted by Oxford University found. But within that, regional data revealed there was a 'blip' in London that corresponded to the financial crash in 2008 and continued through 2009. Heart attack deaths have dropped due to better prevention of heart attacks in the first place with fewer people smoking and improvements in diet through lower consumption of saturated fat. The treatment of people who do suffer a heart attack has also improved leading to fewer deaths with faster ambulance response times, new procedures to clear blocked arteries and wider use of drugs such as statins and aspirin. The research published in the British Medical Journal showed around 80,000 lives have been saved between 2002 and 2008 as deaths from heart attacks declined.

News International offices searched as four more men are arrested

 

Four men, including a serving police officer, have been arrested in connection with Scotland Yard's investigation into payments to police officers by journalists. Police are also carrying out searches of the News International offices in Wapping, east London, and the homes of the four people. A 29-year-old serving police officer was arrested at his place of work in central London on suspicion of corruption and misconduct in public office. The officer, of the Met's territorial policing unit, is the second police officer to be arrested under the Operation Elveden investigation. A 48-year-old man and a 56-year-old man were arrested at their homes in Essex. Another man, aged 48, was held at his home in north London. All three were arrested on suspicion of corruption and aiding and abetting misconduct in public office. Scotland Yard said the arrests were made following information provided by News Corp's own investigation team. Rupert Murdoch set up the management and standards committee in July following the escalation of the phone-hacking scandal. According to well-placed sources, it has been conducting a forensic analysis of payments by all journalists between 2000 and 2006. A statement from the Met police said: "The arrests were made between 06.00 and 08.00 by officers from Operation Elveden, the MPS [Metropolitan police service] investigation into allegations of inappropriate payments to police. "The home addresses of those arrested are currently being searched, and officers are also carrying out a number of searches at the offices of News International in Wapping, east London. These searches are expected to conclude this afternoon. "Today's operation is the result of information provided to police by News Corporation's management and standards committee. It relates to suspected payments to police officers and is not about seeking journalists to reveal confidential sources in relation to information that has been obtained legitimately." All four men were being questioned at police stations in Essex and London, police said. Twelve people have so far been arrested under Operation Elveden. The operation is being supervised by the Independent Police Complaints Commission, and is being run in conjunction with Operation Weeting, the MPS inquiry into the phone hacking of voicemail boxes. It was launched after officers were handed documents suggesting that News International journalists made illegal payments to police officers. Others questioned as part of the inquiry include the former News International chief executive Rebekah Brooks, the ex-Downing Street communications chief Andy Coulson, the former News of the World managing editor Stuart Kuttner, the paper's former royal editor Clive Goodman, the former News of the World crime editor Lucy Panton and the Sun district editor, Jamie Pyatt. Brooks and Coulson are both former editors of the News of the World, which was closed in July at the height of the hacking scandal following revelations that the murdered teenager Milly Dowler's phone was hacked. Deborah Glass, the deputy chair of the Independent Police Complaints Commission, said: "It will be clear from today's events that this investigation is following the evidence. "I am satisfied with the strenuous efforts being made by this investigation to identify police officers who may have taken corrupt payments, and I believe the results will speak for themselves."

La Sexta loses rights to show Formula One

 

TV channel La Sexta has lost the right to show Formula One in Spain after ‘not being able to meet the payments’. It’s reported that La Sexta has not paid the 45 million which it should have this year. The situation is further complicated by the fact that La Sexta faces a merger with Antena 3. It there is a bidder, the name of the channel which will show the sport in Spain will be known on February 6. Mediapro which owns the rights has organised an auction in which all the TV channels will be able to bid for the 2012/13 season.

Brussels has announced the opening of disciplinary proceedings against Spain for failing to meet EU conditions for battery hens.

 

 It means the country now has only two month to correct conditions. About a third of Spanish egg production does not meet the latest regulations, despite the fact that the country, along with the rest of the EU, had more than ten years to adapt to the year 2,000 directive. In Spain there are 720 battery hen farms which hold 43.5 million battery hens. Failure to meet the regulations can imply distortions in the market and unfair competition. Spain is second placed in a list of 13 countries which have work to do, with Italy at the top of the table. It’s estimated that 50% of the birds cages are now in the required condition, and last week the new Agriculture Minister, Miguel Arias Cañete, said Spain was on the road to compliance and asked for ‘certain flexibility’ from Brussels. Each hen has to have 750 square centimetres, have a nesting area, and also facilities to cut their claws. Brussels says that across the EU there are 51 million hens do not have cages in condition. If Spain fails to correct matters in two months, Brussels may grant another two month period, but if that fails the case will go before the European Court of Justice.

Survey reveals expat banking fears

 

The Expat Banking Poll was sponsored by Lloyds TSB International and conducted by expat website Just Landed. Expats in Spain were found to have the most problems with banking abroad. Almost two-thirds of those polled – 64 per cent – said that they do not trust local banks at all. Some of the most common problems cited by those who distrust banks abroad include unfair charges, trouble with the language barrier and money that was deducted from their account without any explanation. Briton Graham Hunt, who runs a Spanish property website and has written some hard-hitting blogs on banking in Spain, said: "Two years ago, there was a lot more trust in Spanish banks. "But the past couple of years have seen new charges for cards, account maintenance, transfer fees... this put people into the red in unused accounts, and they were then given an additional overdrawn charge. As a result, trust disappeared." Spain is happiest expat destination 19 Jan 2012 He also claims bank charges have increased "dramatically" recently and that lack of clear communication is the major problem for expats not speaking Spanish, and banks not employing people with language skills. "However my experience is that if you have a good relationship with the bank manager then any charges on the account can usually be got back," Mr Hunt said. "You just threaten to take your business elsewhere." Ali Meehan, who runs the Costa Women community network, said however there were many reasons expats wanted to use Spanish banking services. ""Many expats bank with Spanish financial institutions because they have mortgage products or loans locally," she said. "Some banks also offer special deals if you have your UK pension paid direct to Spain." More than 11,800 expats in total were surveyed for the Lloyds TSB International report. More than half of those, 59 per cent, said that they do trust their banks abroad, while only 22 per cent of respondents said they did not trust their banks "at all". In the United Arab Emirates, 74 per cent polled said they completely trust local banks; in Kuwait, this number is even higher, at 83 per cent. In Europe, German banks receive a similar score, with 68 per cent of expats polled completely trusting their services. UK banks – though facing many problems – are completely trusted by 52 per cent of respondents. And despite uncertainties over the British pound, 36 per cent of expatriates surveyed claim they would invest in sterling over any other currency. "While the poll demonstrated a lot of positivity, there are also some issues to be addressed," said Daniel Tschentscher, managing partner at Just Landed. "In the current climate, one would expect the level of trust to be lower, but that really doesn't seem to be the case at all."

Identity fraud biggest threat as number of scams soars

 

UK fraud levels increased by 9% last year, new figures revealed today, with identity scams the biggest contributor. Over 236,500 cases of frauds were identified during 2011– the highest number ever recorded, according to CIFAS, the UK’s Fraud Prevention Service. Nearly half of all cases were incidents of identity fraud, with some 113,000 cases reported to the CIFAS – up 10% on 2010. Facility takeover fraud – where a fraudster gains access to and uses a victim’s bank account or credit card for example – meanwhile has surged by nearly 300% in just five years and now accounts for 18% of all fraud. This means two data driven frauds make up over 58% of all frauds identified, CIFAS said. What’s more, the number of victims of both types of fraud combined has risen by 10% since 2010. Richard Hurley, CIFAS communications manager, said: ‘All organisations must recognise this threat, and review how they try to prevent such frauds: whether that is by reviewing their security procedures and increasing identification requirements when dealing with applications, or by ensuring that individuals regularly change passwords and PIN numbers’. Incidents of misuse facility fraud – where an account has been legitimately obtained but later used fraudulently – also increased some 13%. The number of false insurance claims recorded, however, has fallen 23% from 537 to 396 cases. According to CIFAS, these figures confirm that as austerity bites, economic crime continues to be a stealthy, insidious danger.

Costa del Sol opposes drilling for oil and gas

 

IGNORING longstanding local opposition, energy giants will continue the search for gas and oil deposits off the Andalucia coast. The first outcries were heard years ago from the tourist sector, coastal towns and environmentalist groups after the Ministry of Industry granted permits for offshore prospecting. Disapproval has now increased following authorisation for Canadian multinational CNWL to begin prospecting in the Mar de Alboran between Malaga and Granada. No date has been announced but work is expected to begin within a month over an area of 130,000 hectares off Almuñecar, Salobreña and Motril (Granada) and Nerja and Torrox (Malaga). Opponents to the project have intensified calls for the new central government in Madrid to revoke the licences and urged both the PP and PSOE to take action. Last year saw a wave of protests after Repsol YPF’s permits for prospecting off Mijas, Fuengirola and Marbella were extended until August 20, 2013. These initiatives, said Marbella’s lady mayor, Angeles Muñoz, were an attack on tourism “our principal source of income” as well as the environment. Professional fishermen are convinced that fishing grounds will be adversely affected and it would be still worse if gas or oil were eventually located and drilling authorised. This could spell ruin for the eastern Costa de Sol, predicted Jose Luis Guerrero, head of the Caleta de Velez fishing guild. Professor Juan Ignacio Soto of Granada University did not share Guerrero’s view, however. The system that would be used – known in Spanish as “air gun” because it uses compressed air – does not adversely affect marine life, he claimed. And while many Costa del Sol residents were horrified at the vision of oil rigs off the coast, others welcomed the possibility. “Wouldn’t this benefit the Costa del Sol and Spain?” was an often-repeated comment on Internet blogs. Meanwhile, retired engineer with 30 years experience in the offshore oil industry, now living in Axarquia, David M. Ritchie, 69. Ritchie said that in the case above there has been longstanding 'local' opposition. “One has to view this opposition carefully and try to ascertain whether it is well informed through good research or just some people, although dedicated to their cause, simply spouting uninformed hot air. I fear that on the Costa del Sol the latter applies.” “Evidently the tourist sector is to the fore in protest. One must ask why? I have read the comment that oil rigs are unsightly. In fact they are no more unsightly that container ships. ferries, oil/gas tankers and cruise liners.” “ One more different vessel will make no difference or do the tourist sector, coastal towns and environmentalist groups wish to ban all shipping?” he said. Opponents to exploration have evidently intensified their calls for the new government in Madrid to revoke existing licences and urge the two major parties PP and PSOE to take action. “My response to this is simply on what scientifically and engineering research do they base their protests?” he asked. “I suspect they have little or no knowledge of the exploration and exploitation of natural hydrocarbons industry. I fear that they simply feel they must protest without really knowing why.” Would not Spain benefit enormously from any oil and gas found off its coasts? In these days of worldwide recession would it be right for a nation to turn its back on income to benefit its people on the say so of a few noisy pressure groups? The answer must be a resounding no! “Let's really talk of protest groups/organisations. Consider one of the biggest or possibly the best known one, Greenpeace. There was a storage unit called the Brent Spar on the Brent oilfield in the North Sea. When it became redundant, the owner Shell wished to demolish it in situ. Greenpeace mounted a very effective campaign against this and Shell filling stations across the UK Europe were boycotted. Greenpeace told the world that the Brent-Spar contained so many dangerous chemicals which if released would wreak havoc with wildlife and humanity. Their campaign was so successful that Shell capitulated and towed the Brent-Spar to a fjord in Norway where it could be 'safely' demolished under close scientific monitoring and the death dealing chemicals could be identified and safely contained. What did these experts find? Nothing, absolutely nothing! All of Greenpeace's 'scientifically backed' predictions were proved to be nothing more than false and very loud posturing. Did Greenpeace go to any pains at all to tell the world that they had made a mistake? No! Not even the smallest 'oops'. Greenpeace were proved to be loud mouthed ignoramuses.” “I left the British Royal Air Force in 1969 and joined the fledgling offshore industry in early 1970. The offshore expertise in those days was American as they had been operating in the Gulf of Mexico. Within a very short time British expertise had left the Americans behind and British 'oilmen' became the crews of choice. It was in UK offshore operations where the present strict high operational standards were developed and honed. Development of safe practices went hand in hand with operational development and in the 30 years from 1970 to 2000 the whole industry became a safer one. But of course one can never eliminate accidents and the industry suffers from any accident being a major news item providing fodder for pressure groups who chose to ignore any statistics which in a global sense showed the offshore industry as a comparatively safe one. I have never been involved directly in any incident leading to injury or contamination. Likewise I have never seen any fishing adversely affected but have seen the opposite happen and fish stocks around an offshore installation increase. I agree with Juan Ignacio Soto of Granada University when he sees no problem from drilling operations or initial sonar type surveys. As a resident of Spain I welcome any exploration and exploitation of Natural hydrocarbon resources. Oil or gas finds turned into an industry would benefit the country and the people of Spain tremendously. To oppose the exploration for oil or gas is to deny a great source of income for the whole country, so I willingly oppose the opposers.”

Spain Plans Budget Law as Drug Firms Owed $8.4 Billion by States

 

Spain pledged to set spending limits for regional governments in a new law tomorrow as the country’s pharmaceutical lobby said the regions owe companies $8.4 billion for drugs. The People’s Party Cabinet plans the budget-stability law to flesh out a constitutional amendment that the party helped the former Socialist government pass in September. Budget Minister Cristobal Montoro said “early warning” and “automatic correction” systems will be set up to prevent overspending and sanctions will be strengthened. “The aim is to guarantee the budget stability of all administrations, boost confidence and strengthen Spain’s commitments to the European Union,” Montoro told a parliamentary committee today in Madrid. Spain’s PP government, in power since December, is trying to convince investors it can reduce its budget deficit by almost half in 2012 even as the economy suffers its second recession in two years. The law aims to increase discipline in the regional governments, which have accumulated unpaid bills after they were shut out of public debt markets and saw their tax revenues collapse. Spain’s 17 regions owed pharmaceutical companies 6.37 billion euros at the end of 2011, lobby group Farmaindustria said today in a statement. That debt has risen 36 percent from a year earlier as payments were delayed by an average of 525 days, according to the group, which has urged Prime Minister Mariano Rajoy to sell bonds backed by the unpaid bills in a program that would be guaranteed by the government. Credit Line As regions including Valencia suffer from a liquidity squeeze, Montoro has offered the states a credit line to allow them to pay unpaid bills. The government will seek tighter deficit plans in return, he said. The budget law will prevent spending rising more than projected economic growth, while giving debt redemptions and interest payments priority over other public spending. The ratio of debt to gross domestic product will be limited to 60 percent, Montoro said. The PP or its allies govern in most of Spain’s 17 regions, strengthening the government’s hand to reorder public finances. The regions, which missed their combined budget goals in 2010 and 2011, control about a third of public spending and hire half of the countries’ public workers. “We have seen the willingness of all the regional governments that Spain should have a new budget-stability law,” Montoro said today.

Psycho gang boss set for arrest over Maria killing

 

THE net is closing in on the 30-year-old criminal who is suspected of murdering Romanian teenager Maria Rostas. Sources say that gardai should be able to re-arrest the psychotic south city gangster "within weeks" after the discovery of the body of the tragic 18-year-old in the Dublin Mountains on Monday. The criminal is in Cloverhill Prison where he is on remand and facing trial for a number of serious criminal offences. He is also the chief suspect for a number of other serious crimes including a pub murder last year. The development comes as authorities in Romania contact-ed the family of the Roma teenager who gardai believe was savagely sexually abused before being shot in the head. It is understood that the family of Maria (Marioara) Rostas, including her father Dimitri, will travel to Ireland to bring her body back home to Romania for burial. Sources are still unsure whether the victim was taken to a house near Newry to be violated by a notorious underworld figure or whether her ordeal involved being assaulted over a number of days in a house in Pimlico before being shot dead and her body dumped. The chief suspect, along with some of his closest associates, was arrested in December, 2008. But they were all released without charge. When arrested, the chief suspect was wearing a bulletproof vest in bed. Gardai have always worked on the theory that Maria was shot dead in the upstairs room of a derelict house in Brabazon Street just days after being abducted as she begged on East Lombard Street on January 6, 2008. The Brabazon Street property was later gutted in a fire which was started by criminals in a bid to destroy evidence. CANDLES The chief suspect is the number one target for gardai and it is understood that a strong case is being built against him. "This maniac is one of the most dangerous criminals in the country. Certain information has been received which indicates that he saw the devil in her eyes which caused him to freak out and shoot her," a source said. "Despite being an absolutely evil individual, he has some kind of strange religious beliefs and is very afraid of the devil. He is all into candles and altars and stuff like that." The investigation has been helped because the victim's remains were very well preserved after being so tightly wrapped in plastic bags. The Herald revealed that two major south Dublin criminals helped the chief suspect bury the body of the tragic teenager. Sources have revealed that the south city gangster enlisted one of his closest associates to help dispose of her body after he shot her. The suspect's pal was so terrified that the gangster would murder him after burying Maria that he brought a close relative with him to help in the dig.

Bulgarian gangster Tihomir Georgiev has contract on his head

 

Tihomir Georgiev — known as the Butcher Of Bulgaria for his reputation for slicing off fingers and ears of his enemies — is due to be extradited this week. He is suspected of two murders in Bulgaria and could face at least 18 years in jail if convicted. But crime bosses — furious he tried to cut a deal by giving evidence against his former paymasters before going on the run — are taking bets that he will not see out the year. They have issued orders Georgiev, 43 — caught at a gym in Bermondsey, South London, after a tip-off from The Sun — must be killed behind bars. A source said: "His chances are slim to say the least."

Two arrested after headless burnt body is found in 'suspected gangland execution'

 

Two men have been arrested after a man was beheaded and set on fire in a suspected gangland execution. Firefighters discovered the headless body on fire after being called to a wooded area off a car park in Wellington Street, Stockport, in the early hours of this morning. After extinguishing the blaze they found man's head nearby. Forensic officers remove the body in a covered body bag at the murder scene where the body of a decapitated man was found on fire at 5am this morning Two suspects, aged 29 and 31, were arrested prior to the body being found - on suspicion of possessing shotgun cartridges - following an incident at a Stockport flat. On the way to the police station, about 5.10am, officers were alerted to a fire following a call from a nearby casino and the body was discovered. It is feared the victim - a man in his 20s - was killed during a 5am rendezvous at the flat before being wrapped in a duvet and dumped. The scene of the grisly discovery is just 150 yards from the town's magistrates' court and a police station. Forensic officers and the tent where the body of a decapitated man was found on fire at 5am this morning Today, as a police cordon was put up around the murder scene, tests were being carried out on the body to establish where he was killed. It is believed the man was decapitated with some kind of bladed instrument, either a sword or a knife. Further tests will be undertaken to establish whether petrol was used in an attempt to destroy the body. The suspects were arrested at a first floor flat where the 29-year old jobless suspect was believed to live alone. Police questioned two female relatives who are believed to live in Wales. One neighbour said: 'There were always shenanigans going on inside that flat - so much so I would switch a fan on inside my place to drown out the noise so I could go to sleep. 'In the early hours of the morning before the body was found I had heard one such rumpus with lots of shouting going on so I put my fan on as normal.

The UK could become a hub for smuggling the herbal stimulant khat,

 

European police and politicians have warned. The Netherlands is the latest country to outlaw the sale of the plant, which is now banned in sixteen EU member states and Norway. Khat is freely sold in the UK and observers say the UK's isolated stance could make it the main base for Europe's khat trade. The British government has commissioned a new review of khat use. Until announcing its ban earlier this month, the Netherlands was similar in its stance to the UK where the East African plant is legally imported, sold and consumed. In 2005 the UK Home Office commissioned a report by the Advisory Council on the Misuse of Drugs (ACMD) which concluded that "the evidence of harm resulting from khat use is not sufficient to recommend its control." In the UK, the drug is mainly consumed by people of Somali and Yemeni origin and the ACMD report concluded there was "no evidence of its spread to the general population." 'Social harm' Gerd Leers, Immigration and Integration Minister in the Netherlands, says he already has enough evidence of social harm caused by the drug to support a ban, which will come into force from June this year. Continue reading the main story “ Start Quote Those who argue against a ban don't know about the community and they can't see all the damage it is doing to families and individuals” Muna Hassan Sister of khat user Mark Lancaster, MP for Milton Keynes North, argued that khat should be outlawed in Britain in a speech he made in Parliament earlier this month. But others say that making khat a controlled drug could lead to further problems. "What worries me about the Netherlands is that once these legal Somali traders are criminalised and have their livelihood taken away from them - what are they going to do next?" says Axel Klein, an expert witness for the ACMD's 2005 report. "They have contacts, trading skills, financial acumen so it is very possible that they will start trafficking the khat and then diversify into harder drugs. "This is our main concern when looking at the UK as well. "Do we really want to create the opportunity for an organised crime syndicate to start-up from nowhere with long term consequences by banning khat?" Continue reading the main story Find out more Hear more on The Report on Radio 4 on Thursday, 26 January at 20:00 GMT. You can listen again on the Radio 4 website or by downloading the podcast Listen to The Report on the Radio 4 website Download The Report podcast Explore The Report archive Mr Klein argues that khat is chewed mainly by older men in the Somali diaspora and the practice will die out - rather like snuff has done in the UK. But British-Somali Muna Hassan is not so sure. She blames khat use for inducing her younger brother's paranoid schizophrenia. He has lived in the UK since the age of five and had a bright future ahead of him, studying at university, when he then started chewing khat. "The Somali community has a unified voice on this," she told Radio 4's The Report. "Those who argue against a ban don't know about the community and they can't see all the damage it is doing to families and individuals. We know," she says. 'Dangerous' drug Eleni Palazidou, a psychiatrist who has worked with the Somali community in east London, agrees. "For me it is a drug - no two ways about it. "Every patient that I have seen who chews khat, I have seen them worsening and it is impossible to get their condition under control. Continue reading the main story What is khat? Khat refers to the leaves and shoots of the Catha edulis - a flowering shrub native to the Horn of Africa and Arabian peninsula Khat has many names including 'qat' (Yemen), 'jad' or 'chad' (Ethiopia, Somalia), 'miraa' (Kenya) or 'marungi' (Uganda, Rwanda). Khat leaves are chewed and contain stimulant substances that have amphetamine-like properties. Khat contains cathine and cathinone which, as isolated substances, are banned in the UK, but in khat leaves are not. It is chewed mainly by men in khat houses known as Mafrishes, though there is anecdotal evidence of growing use by teenagers and women. In the UK it is an informal, legal trade so it is impossible to know exactly how much is imported. Estimates range from 10 to 60 tonnes a week. "What khat does to the brain is similar to amphetamines. I think heavy, regular use is dangerous. I have no doubt that khat has a major adverse effect on people's mental health and does cause psychological problems," she told The Report. The Netherlands' ban has been welcomed by Dutch citizens like Dagmar Oudshoorn, mayor of the village of Uithoorn, near Schipol, who says the khat trade has been a blight on her community. "Four times a week 200 cars arrive with people who want to buy khat and they fight - we had stabbing incidents - and they leave rubbish everywhere. "We want to refurbish our business area but because of the bad environment we lose investors and customers," she told the BBC. Neighbouring states, where the drug has long been illegal, have also put pressure on the Dutch government in The Hague because they have seen a sharp increase in khat trafficking from Holland. For Europe's Nordic countries, much of the khat arrives by truck across the Oresund bridge between Denmark and southern Sweden. Swedish police estimate that 200 tonnes is smuggled into the country each year, with a street value of 150 euros (£125/$190) a kilo. Continue reading the main story “ Start Quote With the Eurotunnel you can get from London to Malmo in 15 hours. Britain will become the new hub in Europe that is for certain” Detective Stefan Kalman Swedish police After years of lobbying, Swedish MEP Olle Schmidt admits he was pleasantly surprised by the Dutch move to ban khat. "There is a shift in the Netherlands. They no longer want to be seen as a liberal country where tourists can come to smoke pot and buy drugs. "Now, of course, khat will come more extensively to the London airports and then be smuggled to the rest of Europe, because you can earn a lot of money with this drug," warns Mr Schmidt. Stefan Kalman, a senior detective in the Swedish drug squad, says customs officers catch smugglers on the border several times a week. "The couriers often have accidents because they drive so fast", he says. "Sometimes they shoot past the border controls without stopping because they are nervous - khat is quite bulky and you cannot conceal it like other drugs." They are also in a rush because the drug has to be consumed when it is fresh. Cathinone, one of the psychoactive agents in khat leaves, is highly unstable and loses its potency within three days of harvesting. With the door slammed shut in Holland, smugglers will turn to the UK despite the longer distances says Detective Kalman. "With the Eurotunnel you can get from London to Malmo in 15 hours. Britain will become the new hub in Europe that is for certain." The British government has commissioned a new review of khat use - the date of its publication is still to be confirmed.

3 years after US accident, boat washes up in Spain

 

As he swam toward the coast of Nantucket, Mass. in August 2008, Scott Douglas, 58, watched his yellow fishing boat disappear, carried away by the swelling surf. He thought it would be the last time he'd ever see the Queen Bee. But yesterday, more than three years after Douglas and his brother-in-law were tossed off the boat by a wave, the U.S. Coast Guard called to say the vessel had washed up on the Spanish coast. It was rusty and covered in barnacles, but intact. "It looks entirely different," Douglas said upon seeing the photos. "That's amazing." Douglas remembers the water was restless on the day he set out to sea, and the fish weren't biting. He tried to keep the boat stationary, bracing himself as huge rollers crashed into it. advertisement "At all times, it's a very sketchy area," Douglas told msnbc.com. "You wouldn't want to be dumped in the ocean there." But that's exactly what happened when a rogue wave knocked Douglas and his brother-in-law, Rich St. Pierre, off the boat and into a sink-or-swim fight for survival. Douglas remembers thinking the water was not too cold. "The only way I was going to survive was just to get started, not tread water," he said. But swimming didn't come as easy to St. Pierre, 68, who had gone through open heart surgery a year earlier. However, a survival kit containing an inflatable device had been knocked off the boat and floated to St. Pierre's side. It was a miracle, Douglas said, noting that the kit was the only item from the boat in the water with them.  Courtesy of U.S. Coast Guard Scott Douglas, 58, watched his yellow fishing boat disappear in 2008, carried away by the swelling surf. He thought it would be the last time he'd ever see the Queen Bee. Douglas swam for about an hour and made it to shore on Smith's Point, a beach off the coast of Nantucket. Dripping wet and exhausted, he walked up to a cabin and asked to use the phone to alert the Coast Guard. Not long after, he saw St. Pierre walking on dry land. "At the end of the day, it just wasn't our time," Douglas said.  While that marked the end of their ordeal, the Queen Bee's journey didn't end there.  Lt. Joe Klinker, a U.S. Coast Guard spokesman, said the most likely scenario is that the boat somehow got across the continental shelf and into the Gulf Stream. "From there it may drift north off the coast of northern Canada and then east with the North Atlantic currents," Klinker told msnbc.com. He said it's rare, but not unheard of for an object off the coastline of the United States to drift across the Atlantic to Europe. But a boat? "I've never heard of anything like this," Klinker said. Smith's Point Llanes NRoad 1000 miles1000 miles 2500 km2500 km  It's not uncommon, he said, for the Coast Guard to locate derelict ships from Florida off the coast of Virginia, or vessels from Virginia off the coast of Massachusetts, but never in Europe.  The ability to withstand the hardships of the Atlantic has a lot to do with the make of the boat, Klinker said. The Queen Bee is a 26-foot center console fishing boat made by Regulator.  "It probably could have floated for another three years," Klinker said. The Spanish Coast Guard alerted their U.S. counterpart Tuesday. Based on salvage law, the boat now belongs to Spain. Douglas, who is now retired and lives in New Jersey, said he doesn't want the boat back. But with four grandchildren, he has thought about turning Queen Bee's story into a children's book.    "It's interesting to see what life takes and gives," he said.

Eating fried foods didn't hurt the hearts of Spaniards who follow a Mediterranean diet

Eating fried foods didn't hurt the hearts of Spaniards who follow a Mediterranean diet, but the findings are too good to be true for Canadians, experts say.

A study in Wednesday's issue of the British Medical Journal suggests that frying foods in olive and sunflower oils is not associated with an increased risk of heart disease or premature death.

The Mediterranean diet favours fruits, vegetables, fish and whole grains. (iStock)

Prof. Pilar Guallar-Castillón from Autonomous University of Madrid and her co-authors surveyed the cooking methods of 40,757 adults aged 29 to 69 over an 11-year period. None of the participants had heart disease when the study began.

The people were asked in a typical week whether they ate food that was fried, battered, crumbed or sautéed. Their answers were divided into categories based on how much fried food they consumed.

During the follow-up period, there were 606 events linked to heart disease and 1,134 deaths.

"In Spain, a Mediterranean country where olive or sunflower oil is used for frying, the consumption of fried foods was not associated with coronary heart disease," the study's authors concluded.

The results directly apply only to Mediterranean countries where foods are fried in a similar way to Spain, the researchers noted.

Spanish participants more active

"When I look at the group of patients evaluated in Spain 10 years ago, they were much more active and fit than we are as Canadians nowadays," said Dr. Beth Abramson, a cardiologist at St. Michael’s Hospital in Toronto and a spokesperson for the Heart and Stroke Foundation of Canada.

And overall, people in the study ate a diet that was heart healthier than a typical North American diet.

The Mediterranean regime favours fruits, vegetables, fresh fish and whole grains.

"Occasionally having some fried food now and then isn't going to be harmful probably in the long run, but routinely frying food just adds to the chance that you're going to become overweight and out of shape," Abramson said.

The investigators only questioned participants about their diet at the start of the study, which isn't as reliable as checking in more often, Abramson said.

Floria Aghdamimehr, a wellness and life coach in Halifax who teaches people how to improve their diet, said the study confirms the value of using olive oil, though sparingly.

The nutritional content of foods changes when they are fried, Aghdamimehr said.

Nutritional changes with frying

"Most of the deep-fried foods people eat in North America … [uses] oil [that] is being recycled — reused several times,” Aghdamimehr said.

In Spain, fried food doesn't equal fast food from restaurants the way it often does in North America, the researchers said.

"Frying leads to an increase in trans fats and a decrease in unsaturated fats in foods," said Prof. Michael Leitzmann of the department of the epidemiology and preventive medicine at University of Regensburg in Germany in a journal editorial published with the Spanish study.

"Frying also increases the energy density of food and makes food more palatable, which may lead to the consumption of larger amounts."

The study was funded by the Fund for Health of Spain, five Spanish regional governments and the Catlan Institute of Oncology.

Underworld bankers Daniel Keenan and Andrew Barnett who laundered £17m of drug money are jailed

 

Two underworld bankers who laundered more than £17million in drug money have been jailed for a total of 17 years. Daniel Keenan, 41, and Andrew Barnett, 45, used a stolen identity to clean up proceeds from a massive cocaine and heroin dealing operation by making currency exchanges They were caught out when police stopped Barnett with £500,000 in cash stuffed into a satchel. The pair were subsequently linked to Ian Kiernan, who was jailed for 20 years in 2001 for his key role in one of Britain's biggest-ever drug smuggling plots. Andrew Barnett (left) and Daniel Keenan (right) laundered the vast proceeds from a cocaine and heroin ring by making currency exchanges Barnett was stopped on 26 November 2009 near Marble Arch carrying a satchel found to contain 535,000 euros in 200 euro notes. He also had a receipt from a nearby money service bureau called Interchange. Convicted blackmailer Keenan contacted the police station a few days later, claiming he had asked Barnett to carry out the transaction, and was promptly arrested on suspicion of money laundering. Investigations revealed Keenan used a stolen identity to set up his Interchange account. Since opening the account in April 2008, Keenan and Barnett had made more than 300 transactions totaling more £17million. The money was generally brought in for exchange in £20 notes in large bags. The pair admitted money laundering but initially claimed the cash came from illicit gambling on horse racing. But after a two-day hearing at Southwark Crown Court they admitted knowing that that bundles of cash had come from drug deals. This is some of the money recovered by police from the pair, who were caught when officers stopped Barnett with £500,000 worth of currency stuffed into a satchel Jailing Keenan for 11 years and Barnett for six years, Judge Nicholas Loraine-Smith said the offences were 'hugely successful' and committed while Keenan was on license from prison. He told Keenan: 'Interchange was visited more than 400 times as you or others delivered cash amounting to a total of £17.5million. 'I accept that initially you thought you were being used to launder the proceeds of illegal gambling. 'But eventually the amounts of money involved must have made it clear that they could only come from the most serious of crimes - sale of Class A drugs. 'You yourself signed for 58 deliveries amounting to £12million while your assistant Mr Barnett signed for about £5 million. 'When police detained Mr Barnett you came up with a number of explanations and produced quantities of false paperwork to try and justify your business which included the use of other people's identities.' Daniel Keenan is here seen on CCTV counting out huge piles of banknotes. Keenan and Barnett laundered more than £17million in organised crime profits Barnett had claimed he was simply acting on behalf of Keenan and was paid £200 each time he want to the Interchange. Drug baron Ian Kiernan had been jailed for 20 years and banned from racecourses for 10 years after a Jockey Club investigation found he was involved in corruption in horseracing. The head of the syndicate, Brian Wright - dubbed The Milkman because he always delivered - was jailed for 30 years in 2007. The link between Kiernan, described as the drug ring's storeman, and the launderers was only discovered in December when police investigated Keenan's mobile phone records. Prosecutor Mark Fenhalls said: 'When Mr Keenan's phone records were looked at they showed that that most of the calls were made to his partner, then his mum, and then Kiernan, in that order.' He was found to have been in contact with Kiernan - who was on temporary licence from HMP Latchmere - on all but one of the days on which transactions of more than £400,000 were processed. Keenan was serving a five-year sentence for blackmail and consiring to defraud the clothes shop Monsoon when he met Kiernan in jail. The court heard Barnett visited Kiernan in prison in 2003, Mr Fenhalls said it was 'inconceivable that Barnett... did not know that he was assisting Keenan to launder the proceeds of cocaine dealing on a vast scale. 'No other explanation or inference sensibly arises from the available evidence.' Barnett, of Twickenham, Middlesex and Keenan, of Egham, Surrey, admitted converting criminal property. Keenan also admitted fraud by false representation, having a fake passport and possession of articles used in fraud, a fake bank card.

Drug smugglers and dealers to get law thaw in UK

 

Drug smugglers and street dealers could avoid prison in the UK even if caught with heroin, cocaine or thousands of pounds worth of cannabis, under new guidelines on drug offenses published by the Sentencing Council for England and Wales on Tuesday. The new guidelines, to come into force next month, on February 27, were put out following a three-month public consultation. They cover importation, supply, production, permitting premises to be used for drug-related activities, and possession offences. "Drug offending has to be taken seriously. Drug abuse underlies a huge volume of acquisitive and violent crime, and dealing can blight communities. Offending and offenders vary widely, so we have developed this guideline to ensure there is effective guidance for sentencers and clear information for victims, witnesses and the public on how drug offenders are sentenced,” said Lord Justice Hughes, deputy chairman of the Sentencing Council, as quoted by the British media. According to the official website of the Council, the guidelines intend to distinguish the leading players in drug smuggling from those in subordinate roles such as drug mules, who may be coerced or misled into carrying drugs. It will mean that sentences are based on a court’s assessment of the offender’s role, and on the quantity of drugs involved, or the scale of the operation. Reports suggest offenders who play a “limited” role in gangs, including low-level dealers and so-called drug mules, who bring narcotics into the country, could now face community orders rather than jail sentences. This particular draft received major support during the consultations. Drug barons playing a leading role in large-scale offences such as smuggling and supply will continue to face long prison sentences, as will those who sell directly to the public, especially to children. Police have suggested that gang leaders would be able to escape jail by claiming that they were lesser members. “How can a court be expected to differentiate between the person who says, I am very low in the chain, and those high up?” questioned Peter Smyth, chairman of the Metropolitan Police Federation, as quoted by The Telegraph. “No matter how big a role I played, if I was in their shoes and arrested for drugs I would say I was a low-level player or forced into it. If they can see a loophole, then of course they will go through it.” Under the new guidelines, dealers caught with 6kg of cannabis, valued at thousands of US dollars, or 20 ecstasy tablets, could now avoid prison and receive a community sentence. Heroin and cocaine dealers deemed to have played only a “minimal” role and workers in small cannabis “farms” could also escape custody.

London hospitals write off 'over 90%' owed by foreign patients

 

London hospitals have written off more than 90% of what they are owed by foreign patients not entitled to free NHS care, BBC London has learned. A Freedom of Information request showed Newham Hospital Trust wrote off 96% of what it had invoiced last year. Meanwhile, Basildon and Thurrock wrote off 97% of what it was owed, having previously recovered £68,061 out of £116,561 of its debt. In total, £7.6m was written off by 33 NHS trusts in the region, since 2009. Across the trusts, a total of £26m is owed by patients, of which £18.4m continues to be actively sought. However, hospital trusts said chasing the money was difficult if patients leave the UK. In a statement, Basildon and Thurrock said: "We scrupulously manage our finances and only write off debt after following the full debt collection process." Continue reading the main story Hospital variations in amount written off Newham Hospital wrote off £345,000 out of £358,000 Basildon and Thurrock wrote off £47,000 out of £48,500 Hillingdon hospital wrote off £335,000 out of £660,000 Luton and Dunstable wrote off 2,000 out of 85,000 South London wrote off £29,000 out of £481,000 All figures relate to 2010-11 All hospitals are required to recover money owed for treating these patients.

Saravy Sok, 22, of 88 Forthill Ave., Lowell, who was identified by prosecutors as a member of the Tiny Rascals Gang-Grey, a violent street gang with ties to California, was arraigned on gun charges

 

Saravy Sok, 22, of 88 Forthill Ave., Lowell, who was identified by prosecutors as a member of the Tiny Rascals Gang-Grey, a violent street gang with ties to California, was arraigned on gun charges and a charge of armed assault to murder after the Sunday morning shooting outside 12 Benefit St. According to police and Assistant District Attorney Roberta O’Brien, a 28-year-old man was at a party at 12 Benefit St. when he got into a minor verbal argument with another partygoer. The 28-year-old man decided to leave the party, but outside the man he had argued with challenged him to a fight. The two men had begun to fight when Mr. Sok arrived to help his friend, Ms. O’Brien said. “As they were fighting, this man pulled out a gun and started shooting,” she said in court yesterday. The 28-year-old was shot once in the shoulder and twice in the leg. The injuries were not life-threatening, but the victim may suffer nerve damage, Ms. O’Brien said. The victim walked into the emergency room at St. Vincent Hospital just after midnight Sunday with the gunshot wounds. Police were called to the hospital and spoke to the victim. He told police he recognized the shooter’s girlfriend, and police were able to identify the suspect. Lowell police told city investigators that Mr. Sok was a member of the TRG-Grey gang and gave them a booking photograph from a previous arrest. Mr. Sok was identified as the suspect through witnesses, detectives and members of the Shooting Response Team. Lowell police located Mr. Sok Monday night and arrested him on a warrant for the shooting. In 2008, Mr. Sok was among a large group of gang members in the Lowell area arrested on a variety of charges. Mr. Sok was charged in federal court with weapons offenses. In mid-2009, he was sentenced to serve 32 months in prison with three years of supervised release. Ms. O’Brien said Mr. Sok was still on supervised release in the federal case when last weekend’s shooting occurred. Federal authorities said members of the TRG-Grey gang are responsible for many acts of violence in Lowell over the past decade. Mr. Sok was charged with armed assault to murder, assault and battery with a dangerous weapon, possession of a firearm without a firearm identification card, carrying a loaded firearm without a license and using a firearm during a felony. Not guilty pleas were entered. Bail was set at $50,000 cash, and the case was continued to Feb. 23.

Spain’s Two Finance Ministers Clash on Budget Amid Recession

 

Economy Minister Luis de Guindos said Spain is sticking to its deficit goal even as the economy shrinks, underlining a rift in the month-old Cabinet over whether the nation can halve its shortfall during a recession. De Guindos said the government’s commitment to budget cuts is “total” and there’s “no change” to this year’s target. His comments in Brussels today came after reporters asked him about Budget Minister Cristobal Montoro’s call on Jan. 22 for the European Union to ease Spain’s 2012 deficit goal to take its shrinking economy into account. Spanish Prime Minister Mariano Rajoy divided the Finance Ministry in two after coming to power in December, putting People’s Party veteran Montoro in charge of the budget and giving de Guindos, a former Lehman Brothers Holdings Inc. banker, responsibility for the economy. Rajoy didn’t make either of them deputy prime minister, as the last two finance chiefs were, saying he would oversee economic issues himself. “It’s a trial of strength to see who’s really in charge of economic issues, and Rajoy will just let it happen,” said Ismael Crespo, a political scientist at the Fundacion Ortega- Maranon research institute in Madrid, who was head of the state polling unit when the PP was last in power. “Montoro is speaking more to the public and Guindos is speaking more to the foreigners,” he said in a telephone interview. Economy Contracting Spain’s government needs to rein in its borrowing costs and convince investors it can cut the euro region’s third-largest budget deficit even as the economy enters its second recession in two years. The Bank of Spain said yesterday the economy contracted in the fourth quarter and may shrink 1.5 percent in 2012, adding to pressure on Rajoy, who won the Nov. 20 election on a pledge of creating jobs. Budget Minister Montoro, a 61-year-old public-finance professor and lawmaker for Seville, said on Jan. 22 the EU should ease Spain’s budget target of 4.4 percent of gross domestic product this year as the goal was set by the previous government, which expected the economy to grow 2.3 percent. The deficit amounted to 8 percent of GDP last year, overshooting the 6 percent target. “If Brussels doesn’t adapt the stability program to the new scenario of a recession, it won’t be realistic and not only will Spain sink but the whole of Europe,” Montoro said in an interview with La Vanguardia newspaper in comments confirmed by a Budget Ministry spokeswoman. Austerity Commitment EU Economic and Monetary Affairs Commissioner Olli Rehn rejected Montoro’s comments today after a meeting of finance ministers in Brussels, saying it’s “essential” that Spain meets the target, and must take more measures to do so. De Guindos, 52, who described Montoro in December as his “mentor” and “friend,” said Spain would keep its promises. The task of attending the European meetings falls to de Guindos, who speaks fluent English, while Montoro stays in Spain. “The government’s deficit target is 4.4 percent and there is no change in this respect,” de Guindos said after the meeting today. It isn’t the first time the pair has given differing messages in the past week. De Guindos, who is not a member of parliament, wrote in the Wall Street Journal on Jan. 19 that budget cuts were “not a choice.” The same day Montoro was quoted as telling the Financial Times Deutschland newspaper that the nation may miss its budget goal. The two gave conflicting reports of the 2011 deficit on Jan. 2, as de Guindos said the overshoot may have been even greater than the government’s first estimate. De Guindos’ position on this year’s shortfall is backed up by Deputy Prime Minister Soraya Saenz de Santamaria, who said on Jan. 20 that the government was “determined” to meet the existing target. Rajoy holds a news conference later today after meeting Portuguese Prime Minister Pedro Passos Coelho at 5 p.m. in Lisbon.

Spain workers lose bridge holidays in debt crisis austerity move

 

Considering how many of his friends are unemployed, electrician Javier Ramirez felt like he'd hit the jackpot when his company scored a contract for government buildings here in Spain's sprawling capital. He gets paid by the hour, and rewiring 250-year-old marble halls is a formidable job that should feed his family for years. The problem is, Ramirez worked only about half of last month, and the time off wasn't his choice. It was courtesy of Spain's slate of religious and municipal holidays — a generous 14 per year, 40% more than in the United States — and a beloved little tradition called the puente, or "bridge." Puentes result when a holiday falls on a Tuesday or Thursday and, to make a long weekend, workers take off the Monday or Friday in between. Many employers tacitly acquiesce to an extra vacation day, and some close their offices altogether. Along with the siesta and three-hour lunches, puentes are one of the delicious little time-wasters that have the Spaniards thumbing their noses at more rigid schedules in northern Europe, efficiency be damned. But Europe's debt crisis has decimated Spain's workforce, and unemployment here tops 23%. Now, with northern leaders increasingly scolding the "layabouts" of the south, Spanish Prime Minister Mariano Rajoy says the puentes are something Spain can no longer afford. So, in a nearly $20-billion package of spending cuts and tax increases passed by the parliament this month, Rajoy took aim at the puentes. Starting this year, most holidays that fall midweek will be moved to Monday, limiting workers to a three-day weekend. A few holidays, such as Christmas and New Year's Day, will still be celebrated on fixed dates, but other fiestas that many Spaniards hold dear — the Day of the Blessed Virgin's Immaculate Conception, or the slightly more obscure Festival of St. Mary of the Head, to name just two — will be celebrated on Mondays, in much the same way Americans celebrate Labor Day or Memorial Day. It's too early to put a dollar figure on the potential savings, or to know how many Spaniards might take a vacation day in defiance or out of habit, and create a four-day weekend where they always had one. But the move could significantly boost productivity and outweigh potential losses for hotels, which benefit from domestic tourism with longer weekends, said Gayle Allard, an economist at Madrid's IE Business School who previously worked in Spain's banking sector. "We had problems being on the same schedule with other financial centers. Spaniards were working their traditional day, with the long lunch, and then they stay late at night," Allard said. "If they could kind of align working hours, drop the idea of the siesta and get rid of the puentes, it might actually be beneficial for Spaniards to work a more compact day and week, more similar to European hours." Many Spaniards lucky enough to have jobs these days are underemployed — law graduates working in restaurants, for example. And with a hiring freeze on public jobs, more and more Spaniards are working for hourly pay, with no benefits or job security. They're the ones who lose money on the puentes, among them electrician Ramirez, who doesn't get paid for time off. "I don't really want that relaxing day; I prefer to work," the 36-year-old said as he lined up to go through security early one recent morning to work at the Ministry of Public Works building in downtown Madrid. "I want to take my vacation when I want. So the puente, for me, it's an annoying thing." But for salaried workers, it's a different story. "The change doesn't really affect us office workers, because if we want a long weekend, we've still got plenty of vacation days," said Juan Carlos Yebra, a 38-year-old Web designer in Madrid. "But the puente is definitely a tradition here. Outside Spain, I have a feeling we might be famous for this," he said, laughing. "My co-worker, for example, is from England, and she's constantly saying, 'You're always on vacation!'"

Spain’s economy contracted in the fourth quarter and will shrink 1.5 percent this year,

 

Spain’s economy contracted in the fourth quarter and will shrink 1.5 percent this year, the Bank of Spain estimated, undermining government efforts to cut the budget deficit amid the second recession in two years. Gross domestic product fell 0.3 percent in the quarter, the most in two years, and grew 0.3 percent from a year earlier, the Madrid-based Bank of Spain said today in its monthly bulletin. Economic output may decline this year as unemployment reaches 23.4 percent, returning to growth of 0.2 percent in 2013, the central bank said. The forecasts are based on the premise that the government will adopt additional austerity measures to meet its budget goals “strictly.” Spain’s new government, in power since Dec. 21, is aiming to reduce the budget deficit by about half this year even as the economy slumps. Spain is already in a recession, Budget Minister Cristobal Montoro said on Jan. 18. Credit is shrinking at a record pace and the country has the highest unemployment in the European Union at 22.9 percent. “It’s going to be very difficult to meet the target but it all depends on what measures the government takes,” Jose Luis Martinez, a strategist for Spain at Citigroup Inc. in Madrid, said in a telephone interview. “The important thing is that brave steps are taken to allow for a stronger recovery.”

The King of Spain is a serial womaniser who once made a pass at Princess Diana while she was on holiday with Prince Charles, a book has claimed.

It also alleges that Juan Carlos is a ‘professional seducer’ who has had numerous affairs and has not shared a bed with his wife for the past 35 years.

And it reveals that age has not stopped  the 74-year-old, with the monarch regularly receiving vitamin injections and anti-ageing treatments. 

Tactile: Princess Diana being kissed in 1987 by the King of Spain, who according to a new book, is a serial womaniser

Together: Diana, Prince Charles and their boys with King Carlos, Queen Sofia and members of the Greek royal family on board a yacht in August 1990

The Solitude of the Queen by Pilar Eyre, which is likely to prove controversial in the Catholic country, claims the king made a ‘tactile’ advance to Diana while she and Charles were on holiday in Majorca in the 1980s. 

It follows much-derided allegations made in 2004 by Lady Colin Campbell that the princess had a fling with Juan Carlos while on a cruise in August 1986 and then again the following April. 

Controversial: The Solitude of the Queen by Pilar Eyre claims the king made a 'tactile' advance to Diana while she and Charles were on holiday in Majorca in the 1980s

During a 1987 visit, in which Charles and Diana  went to Madrid, the king was pictured smiling as he kissed the princess on the hand – a gesture which left Diana  looking embarrassed.

Miss Eyre’s book also alleges that Queen Sofia has not slept in the marital bed since 1976 and only remains in the marriage out of ‘a sense of duty’.

She even claims the queen stumbled upon her husband with one of his alleged  lovers, the Spanish film star Sara Montiel, at a friend’s country house in Toledo in 1976.

Sofia, now 73, was forced to attend a football match the day afterwards ‘as protocol demanded’, before storming out of the  Zarzuela Palace, their official residence, with her children.

Advised to stay with her husband, she was told a break-up would mean she would ‘end up being paid to liven up the parties of the newly rich’.

Miss Eyre adds: ‘The role of the queen is sad, she is the loneliest woman in Spain.’

Distant: Carlos and Queen Sofia have allegedly not slept in the marital bed together since 1976

She also told Spanish gossip magazine  Vanitatis: ‘Queen Sofia is a woman betrayed and hurt with a married life that has been a real tragedy. The king’s closest friends I have spoken to say they don’t like her.’

And she alleges that, as recently as last year, when the monarch was recovering from the removal of a benign lung tumour, he was seeing a 25-year-old German translator.

After writing the book, Miss Eyre was informed she would no longer appear on Spanish TV channel Telecinco.

She said she was told: ‘The station has banned talk about your book and does not allow you to continue working. You are banned, Pilar, we are sorry.’

 

Fake Ryanair pilots sentenced for smuggling cocaine into Spain

 

One was a flight attendant for the airline and obtained the pilots' uniforms which helped them to bypass airport securityEFE archive A gang which used fake pilots to bypass airport security and smuggle regular shipments of cocaine into the country has been sentenced by the Alicante provincial court, after 13 kilos of cocaine were discovered at their drugs store in Benidorm. The street value of the drugs found there in a police swoop in July 2009 is given at close to half a million €. One of the defendants was a flight attendant for Ryanair who obtained pilots’ uniforms for himself and an accomplice, allowing them to bypass security at Barajas Airport. The attendant, José Antonio H.P., had been under investigation since the start of 2009 and is thought to have been paid 20,000 € for each of the trips that he made as a drugs courier. The two men have each been sentenced to more than seven years in prison. A third gang member who stored and distributed the drugs, and is thought to have been the leader, was sentenced to eight and a half years, while a fourth received four years as an accomplice.

Costa tragedy: 'Get back on board, damn it!' T-shirts a hit

 

A coast guard officer's "Get back on board damn it!" order to the fleeing captain of the capsized Costa Concordia liner is being printed on T-shirts by a company hoping to inspire Italians to rescue their country from economic crisis. Italians have made a hero of coast guard officer Gregorio De Falco for his angry exchange with skipper Francesco Schettino - who has been blamed for the accident and is now under house arrest accused of manslaughter, causing a shipwreck and abandoning ship. Stefano Ramponi, owner of the Lipsiasoft web agency that is producing the T-shirts and selling them on the Internet for 12.9 euros ($16.63), said they had become an instant hit both in Italy and abroad. "We have had a lot of requests from all over the world, from Brazil, Hong Kong, also from Germany and France, the UK. Everyone is asking us for it," he said. He said he had been criticised by some people for making money out of the January 13 disaster, in which 11 people died and 21 are still missing. But he hoped the slogan will become a rallying cry for all Italians to shoulder their responsibilities and work together to navigate through recession and get the euro zone's third largest economy back on course. "We liked this phrase a lot because it was said by Captain De Falco in an extremely difficult situation, it really impressed us," Ramponi said. "We wanted to... distribute it en-masse...particularly to all the people in Italy who don't concentrate on their jobs, who don't give their all and do harm to Italy in this time of crisis."

Galicia offers attractive alternatives.

Since the Middle Ages, the Catholic faithful have flocked to Galicia in the far northwest of Spain to worship at the shrine of St. James in Santiago de Compostela.But a new sort of pilgrimage to Galicia is under way, this one prompted by the excellent potential of the region’s vineyards. As travelers along the Way of St. James know, Galicia can be a forbidding place. Before reaching Santiago, they have to cross mountainous badlands where temperatures can dip well below freezing. On the coast, the landscape turns green and fertile — thanks to torrential rains that can roll in off the Atlantic at any time.

But vines are hardy, often producing the best wines in extreme conditions. Those of Galicia are decidedly different from the stereotypical Spanish wines, those that ripen under a powerful Mediterranean sun, which packs them full of fruit and alcohol.

Rather than power, the wines of Galicia display a lively freshness and considerable elegance. They tend to be medium-bodied, with no more than 12 percent or 13 percent alcohol — unusually low at a time when reds with 16 percent are not uncommon and even whites sometimes top 14 percent. And they often contain a streak of what growers call “minerality” — a nebulous term that, to me, means the fruit doesn’t mask a sense of place.

As consumers grow weary of so-called blockbusters — big wines of indeterminate origin that stain your palate and leave you too dazed to drink a second glass — Galicia offers attractive alternatives.

“For people who say there are only blockbuster wines in Spain, this is the answer,” said Wim Van Leuven, an importer in Mol, Belgium, who specializes in Spanish wines. “It’s really the Atlantic side of winemaking in Spain.”

He added: “Galicia is like a laboratory for the new Spanish generation, even though you can’t make these kinds of wines elsewhere in Spain.”

One of the newcomers, Rafael Palacios, is a member of one of the proudest winemaking families in Spain, with its roots in the country’s best-known wine region, Rioja. An older brother, Alvaro, was the key figure in an earlier Spanish winemaking renaissance, in the 1990s, when he started making world-class reds in the Priorat region of Catalonia.

When Rafael Palacios saw the vineyards around O Bolo, a village in the rugged eastern stretches of Galicia, he saw a similar opportunity to raise the profile of the white wines of Spain.

Perched on precipitous slopes at altitudes of 800 meters or so, around 2,600 feet, these are among the most strikingly beautiful vineyards in Europe. They are also extremely difficult to work, requiring the construction and maintenance of an elaborate system of terraces to protect the soil against erosion. Over the years, many growers who were unable to make much of a living from wine had abandoned their vines.

But Mr. Palacios was convinced that he could make great wine here from the godello grape, a variety that is native to the mountains of Galicia. Godello is what is known as a “neutral” variety, without strong fruit flavors. Instead, in the hands of a skilled winemaker, it is a medium for the terroir to express itself.

After overcoming the suspicions of the locals, who saw Mr. Palacios as an outsider, he started buying up vineyards in O Bolo, the highest part of a wine-growing region called Valdeorras. Many of them contain old vines, which produce the most characterful wine; their gnarly beauty seems like a permanent feature of the craggy landscape.

Mr. Palacios set up his bodega, or winery, in 2004, and he now makes three wines, including an entry-level bottling and a premium offering that blends grapes from several top sites. With the 2009 vintage, he added a third wine, called Sorte O Soro, using grapes sourced solely from his favorite vineyard, near the highest point in O Bolo. (Sorte means “lot” in Galician.)

Tasting Sorte O Soro, which will not be available commercially until the spring, was a bit like spending a day in these vineyards. It is intensely flavored, with a structure and breadth reminiscent of good white Burgundy — a bit like the feel of the afternoon sun at these high altitudes.