MARBELLA CLUB

Florida deep-sea explorers lost their legal bid to keep a half million silver coins and other treasure raised from a Spanish shipwreck. Now Spain wants to know when and how it will be handed over. Attorneys for Odyssey Marine Exploration and the Spanish government will go before a federal judge Friday to talk about the handover of the treasure. Also at issue, according to court documents, is who is responsible for $185,000 in storage fees accrued since the treasure was flown back to Tampa in May 2007. A U.S. district court and federal appeals courts ruled against Odyssey in its bid to keep most or all of the treasure. Spain contended that it never surrendered ownership of the sunken galleon Nuestra Senora de las Mercedes.

Judge Pablo Ruz issued the charges, stating that the alleged drug trafficking group, comprised mainly of Colombians and Ecuadorians, had been operating in Spain since 2007. Spanish officials estimated that up to $270 million may have been laundered until the group was dismantled in October 2010. The majority of its members have been charged with laundering money. However, the group's leaders, Spain's Luis Berho and his Ecuadorian wife Alexandra Fasce, have also been accused of collaborating with the Revolutionary Armed Forces of Colombia (FARC). Though not all of the $270 million reached South America, over $15 million is thought to have been sent to Colombia with the FARC receiving a significant amount. The primary recipient for the FARC is said to have been Juan Manuel Gomez Buitrago, who is accused of ties to the guerrilla group, reported EFE news agency. A further 12 people registered under Gomez's address also received money which could have been used to finance the FARC's operations, according to the charges. InSight Crime Analysis Though the group's alleged ties to the FARC shows the guerrilla group's reach outside of Colombia, it is important to note that financing appears to have come from, in this instance, sympathizers rather than FARC personnel acting in Spain, as was the case with the arrest of the FARC's alleged co-ordinater of European operations in 2008, Maria Remedios Garcia Albert. This outsourcing could be due to the FARC lacking the requisite skills among their own ranks to carry out a sophisticated laundering operation. As a Brookings Institute report in 2009 noted, armed insurgents who entered the organization at a young age likely lack the operational know-how for complex money laundering schemes schemes such as these. Spain has long been a focus of the FARC -- along with numerous other criminal organizations -- thanks to it serving as a key access point to Europe for cocaine shipments. It seems probable that in exchange for laundering the cash, the FARC may have sent shipments of cocaine to the Spain-based group. If so, these shipments would likely have been moved through Venezuela, a key transit route for cocaine bound for Europe.

Spain’s Cabinet approved new pay limits at public companies and reduced board members before a full overhaul of the sector aimed at curbing spending to meet European Union budget pledges. “The Cabinet will examine in a few weeks the first phase of a restructuring of the state-owned companies,” Deputy Prime Minister Soraya Saenz de Santamaria told reporters after the weekly meeting in Madrid today. Spain’s two month-old government is trying to slim down state spending that ballooned during the decade-long property boom amid a surge in tax revenue. The People’s Party government, seeking to reduce the budget gap, is trying to restore investor confidence to tame borrowing costs and shield Spain from debt- crisis contagion. Saenz said Spain expects major savings from restructuring central government-owned companies, which will be downsized, sold or scrapped if their business can be taken over by public administrations. The government will also encourage regions and town halls to restructure their own companies, Saenz said, as this will be a condition to get help from Madrid to meet their funding needs. Public companies linked to the central government have accumulated debt of 32.3 billion euros, according to the Bank of Spain, and European Union rules don’t require that borrowing to be included in public-debt data. Regions and city halls have taken on 24.9 billion euros of debt, Bank of Spain data show. “These kinds of companies and foundations, which in the end aimed to avoid the controls of the central government, have blossomed, to put it nicely, and it’s not good practice,” Economy Minister Luis de Guindos said yesterday said in an interview with RNE.

Spanish banks reduced lending at a record pace and defaults mounted as the country’s recession and rising unemployment took a toll on their ability to make loans to solvent borrowers. Lending fell by 3.3 percent in December from a year before, the biggest drop since Bank of Spain records started half a century ago, the regulator said on its website today. Bad loans as a proportion of total loans rose to 7.61 percent from 7.52 percent in November as borrowing considered “doubtful” jumped to 136 billion euros ($179 billion) from about 11 billion euros five years ago, before Spain’s property crash. The prospect of a protracted recession in Spain is curbing the appetite for loans and making banks more cautious about lending. The economy may shrink 1.5 percent this year, according to central bank forecasts, while unemployment stands at 23 percent. Exane BNP Paribas predicts an economic contraction could stretch through 2013. “You have a credit crunch in Spain,” said Gilles Moec, co-chief European economist at Deutsche Bank AG in London. “It’s another reason for recession this year.”

 The sackings of Naz Malik and Saquib Zia were announced by the All Wales Ethnic Minority Association (Awema). The charity has been at the centre of allegations of financial irregularities and bullying. Awema's funding was halted by the Welsh government after a damning report. A statement on the Awema website by its chair Dr Rita Austin said an administrator would also be appointed to take over control of Awema's business and assets from the charity trustees, and close the business. Awema's decision follows the Welsh government internal audit services report from 9 February which terminated all grants of public funds to the charity. Continue reading the main story “ Start Quote Clearly there have been serious failings in the effectiveness of governance and financial management within Awema” Dr Rita Austin Awema chair Dr Austin said: "The Awema board would like to thank its staff for the dedicated service they have provided to several hundred participants registered with European funded Awema managed projects in Swansea and surrounding local authority areas, and in north Wales, especially in these last difficult weeks. "Staff members are in active contact with participants and will do their best to ensure that support services to them continue through other means. "The Awema board is resolved to provide a proper duty of care towards our staff as Awema moves towards closure, and is taking all necessary steps to do so." "Finally, the Awema board wishes to acknowledge the gravity of the matters brought to public attention in the... internal audit services report. "Clearly there have been serious failings in the effectiveness of governance and financial management within Awema upon which the Welsh government has acted, and upon which, in consequence, the Awema board now act, with all due speed, one week later." 'Lack of oversight' Mr Malik has indicated that he will not be conducting any interviews following his dismissal. Speaking on BBC Radio Wales last Friday, Mr Zia, who had been suspended from the charity, said he had raised concerns about Awema with its board members. The report into Awema had said there was a "complete lack of oversight of the financial processes and controls" by Mr Malik. It said charity funds were used to pay for gym memberships for staff worth £2,120, £800 was spent on rugby and cricket tickets and a £110 parking fine for Mr Malik was paid. It also said there was a "clear conflict of interest" because one of the charity's directors reporting to Mr Malik was his daughter Tegwen. There were "considerable increases" in her salary from £20,469 to £50,052. An earlier report, commissioned by the charity's trustees, had said Mr Malik used funds inappropriately and paid off credit card debts worth £9,340. It also alleged that his salary was increased to £65,719 without approval from the board.

A former Essex county cricketer has been jailed for four months after admitting a corruption charge relating to a 40-over game against Durham. Mervyn Westfield, 23, pleaded guilty to accepting or obtaining a corrupt payment to aid spot betting on a match on 5 September 2009. The Old Bailey heard he agreed to bowl an over to let Durham score a set number of runs for a £6,000 payment. He is the first cricketer in England to be prosecuted for spot-fixing. Westfield will serve half the term in prison and a confiscation order was made for £6,000. He has received an interim suspension order from the England and Wales Cricket Board. 'Cricket enjoyment destroyed' Danish Kaneria was arrested but not charged over the scam Passing sentence, Judge Anthony Morris told Westfield he was satisfied he would have known it was a corrupt payment and that he could and should have refused it. He added: "You had an opportunity to mention them to the team captain or management, or if you were nervous of doing so, at least to your friends within the team. You chose not to do so. "If, because of corrupt payments, it cannot be guaranteed that every player will play to the best of his ability, the reality is that the enjoyment of many millions of people around the world who watch cricket, whether on television or at cricket grounds, will be destroyed." On Friday, the Old Bailey heard team-mate and former Pakistan player Danish Kaneria told Westfield that a friend would pay him to concede a certain number of runs off his bowling. Prosecutor Nigel Peters QC told the court that the deal emerged when another Essex player, Tony Palladino, went back to Westfield's Chelmsford flat in September 2009, where the bowler showed him "the most money he had ever seen". Kaneria was arrested in connection with the case but later released without charge. 'Utterly ashamed' Mark Milliken-Smith QC, for Westfield, told the court Kaneria and his associates targeted Westfield, who was "more susceptible" because he was on the verge of the squad and that he "felt pressured". The match was one of the first televised games for Westfield, described as "an Essex cricketer through and through". He said: "He bitterly regrets what he has done, he is utterly ashamed." Mr Milliken-Smith added: "He is a life-long and passionate cricket fan and player. In fact, he knows no other love." Essex Police said there were no plans to interview Kaneria again although the investigation would remain under review. Det Sgt Paul Lopez said it was now a matter for the cricketing authorities to deal with.

The News Corporation boss, 81, offered his support to Sun journalists at News International's offices in Wapping.

Ten current and former senior staff at the paper have been arrested since November in connection with alleged corrupt payments to public officials.

Mr Murdoch lifted all staff suspensions pending police inquiries, a move Labour MP Chris Bryant called "cynical".

The high-profile campaigner against and victim of phone hacking, said the decision to lift the suspensions was hypocritical.

"It is massively premature because one would have thought the Murdoch empire would want to wait until Leveson had completed his inquiry and the police and prosecuting authorities had completed their investigations," he said.

"News International has tirelessly campaigned for people who have been charged to be suspended from public office and yet journalists who have been charged at News International are apparently not going to be suspended."

Continue reading the main story

Analysis

Torin Douglas

BBC media correspondent

Rupert Murdoch's decision to go ahead with the Sun on Sunday is a typically bold move, designed to restore journalists' morale and regain the initiative, but many uncertainties remain.

It was widely believed that the replacement for the News of the World had been suspended indefinitely after the fallout from the phone-hacking scandal spread to other Murdoch papers.

The arrest of so many senior Sun journalists seemed to make the launch of a seventh-day Sun impractical.

And the American parent company News Corp was known to be disenchanted with the UK newspaper business.

Will it really want to invest more money in it at a time of such legal and financial uncertainty?

Mr Bryant was awarded £30,000 in damages after his phone was hacked by the now defunct News of the World (NoW). Lord Justice Leveson's ongoing inquiry is examining press standards and ethics.

In an email to staff, Mr Murdoch said: "We will build on the Sun's proud heritage by launching the Sun on Sunday very soon.

"Having a winning paper is the best answer to our critics."

He said he would stay in London for the next several weeks but, describing the recent arrests as a "great source of pain", warned: "Illegal activities simply cannot and will not be tolerated".

But Mr Murdoch praised the "superb work" of Sun journalists and said "the Sun is a part of me".

The company was doing everything it could to assist those who had been arrested, his email said.

Dutch Prince Johan Friso is in a critical condition in hospital after being hit by an avalanche in the Austrian resort of Lech, say officials. Officials said the prince, 43, was buried under the snow for about 15 minutes before being rescued. He was resuscitated at the scene and taken to hospital in Innsbruck, where officials said he was stable but his condition was "still life-threatening". Prince Friso is the second son of Queen Beatrix of the Netherlands. Several members of the royal family had been on holiday together in Lech, in the western province of Vorarlberg in the Austrian Alps. Prime Minister Mark Rutte confirmed that the queen was there but had not been involved in the incident. Deadly season The Austrian Press Agency reported that the prince had been skiing with a small group when the avalanche hit shortly after midday local time, but that no-one else had been injured. "After the emergency call, rescue crews were on the scene with rescue helicopters. He could be located immediately and freed," a police official told Reuters news agency. The Dutch government said in a statement that the prince was in intensive care, saying that "doctors treating him describe the prince's condition as stable, but his life remains at risk". The Austrian Alps have been hit by particularly heavy snow this winter and numerous avalanches. Parts of Voralberg were cut off by the snow this week. Several people have been killed across Europe this year in avalanches. Prince Friso gave up his rights to the Dutch throne in 2004, when he married human rights activist Mabel Wisse Smit. The government had refused to give its support to the marriage, because the couple had given misleading information about the bride's relationship with a dead gangster. Under Dutch law, royals who aspire to the throne must receive permission from the government and parliament to marry as the cabinet will bear responsibility for their actions The couple have two young daughters, Luana and Zaria.

Spanish Prime Minister Mariano Rajoy’s proposal to force banks to recognize further losses from real estate holdings may backfire by saddling healthy lenders with the bill. “The plan is for a massive effort in provisioning of real estate and consolidation, and that has to be paid for,” said Daragh Quinn, a Madrid-based analyst at Nomura International. By refusing to use public funds to help purge a system burdened with 176 billion euros ($228 billion) of what the Bank of Spain calls “troubled” assets linked to real estate, Rajoy may not do the job properly or he may hurt solvent banks by leaving them with the costs, said David Moss, director of European equities at F&C Investments in London. Rajoy wants to make banks accurately value assets piled up on their books as part of his efforts to lower Spain’s borrowing costs and free up the flow of credit in the economy. Investors demand about 763 basis points more yield to hold Bankia SA (BKIA)’s senior unsecured bonds maturing in 2017 than similar German bunds, up from about 46 basis points when the securities were sold in 2007. Since Rajoy was elected on Nov. 20, the rate on 10-year Spanish debt has declined 124 basis points to 5.45 percent. Rajoy wants to avoid committing public funds as he battles to bring down a deficit that was 8 percent of gross domestic product in 2011, exceeding the 6 percent target from the outgoing Socialist government. He announced 15 billion euros of immediate spending cuts and tax increases last month to narrow the gap. “If the public purse doesn’t get used at all, this can only mean this whole process happens more slowly and it might take longer to make the impact that’s needed,” Moss said.

 A year ago, the suspects are alleged to have started a fake project selling properties in the United Kingdom at competitive prices. They allegedly targeted UAE investors. Investigations have since revealed that the company does not have a real estate licence and that the accused defrauded 40 investors. The General Prosecution seized around Dh3 million the suspects allegedly swindled from their victims, in addition to Dh100,000 found while inspecting the fake company. Another Dh250,000 in the firm's account was also confiscated. Article continues below The central bank has been asked to give a report on all the transactions carried out by the company. The means of information technology used by the defendants for the management of their operations have been identified by authorities, with Interpol being asked to arrest the other defendants in the case. An official in the Attorney-General's office urged investors in the UAE to be on their guard and to ensure the companies they deal with are authorised to carry out real estate activities in the country.

The biggest ever British fraud trial begins today when Turkish-Cypriot tycoon Asil Nadir stands up at the Old Bailey to face £34million theft charges. He is accused of 13 counts of theft dating back to the 1980s from Polly Peck, his failed business empire that folded in 1990 under the weight of its £1.3billion debt. When he joined Polly Peck in the early 1980s it was an ailing textiles firm which he transformed into a FTSE 100 conglomerate that housed the Del Monte fruit business and the Sansui electronics firm. On trial: The SFO alleges that Nadir transferred millions out of Polly Peck in the years preceding its collapse Following the collapse he jumped a £3million bail and fled in 1993 to Cyprus, which has no extraditions treaty with the UK, but returned in August 2010 stating he wanted to clear his name. Nadir has argued in the past that there was a grave abuse of process in the case brought against him by the Serious Fraud Office. For years he has alleged that the police and the SFO placed the judge in his case under improper pressure, made false allegations of corruption against him and his advisers and seized documents necessary for his defence. The 70-year old has pleaded not guilty to the 13 charges, which include theft of £33.1million and £2.5million from the company between 1987 and 1990. Under Nadir’s leadership the firm’s market value ballooned from £300,000 to £1.7billion, and an investment of £1,000 from the late 1970s would have been worth £1million at its peak. The SFO alleges that Nadir transferred millions out of Polly Peck in the years preceding its collapse. Its demise hit pension funds and small shareholders. The case is due to last at least four months. Nadir’s fall embarrassed John Major’s Conservative government after it emerged that a Tory minister, Michael Mates, had given Nadir a watch engraved ‘Don’t let the buggers get you down’. Mates, the minister of state for Northern Ireland, resigned over his links to the businessman. Nadir was a major donor to the Tories, pouring more than £1million into party coffers between 1986 and 1990. He was a regular guest in Mrs Thatcher’s Downing Street, and was consulted on overseas development and Middle Eastern trade.

On Monday, the Texas financier heads to court in Houston to battle charges that he operated a $7 billion Ponzi scheme from Stanford International Bank Ltd, his offshore bank on the Caribbean island of Antigua. By all accounts, his was a life of luxury, filled with private jets, yachts, mansions and the sport of cricket. Deemed a flight risk in June 2009 by a federal judge, the 6-foot billionaire has been in jail, sporting prison-issue green and orange jumpsuits and shackles instead of the dark, tailor-made suits he once ordered in bulk. Stanford, a native Texan who was knighted by the government of Antigua in 2006, is accused of misleading investors about certificates of deposit (CDs) issued by his offshore bank, in one of the biggest white collar fraud cases since Bernard Madoff. The CDs were touted as safe, with funds "generally invested in investment grade bonds, securities and foreign currency deposit," according to literature distributed by Stanford's brokerage firm. Instead, prosecutors allege, Stanford invested CD proceeds in illiquid pet-project investments that included Caribbean real estate, a Cowboys and Indians magazine and a pawn shop operator. He also loaned more than $2 billion to himself. The alleged Ponzi scheme started to unravel in late 2008 as the financial crisis deepened and more and more investors asked for redemptions, a situation that left Stanford scrambling for cash. Prosecutors will likely rely heavily on the testimony of the firm's former Chief Financial Officer James Davis, who pleaded guilty in August 2009 and has been cooperating with the government. The two men were college roommates at Baylor University in Waco, Texas. In past interviews, Stanford has blamed Davis, a theme that is likely to be repeated by the defense at trial. "I didn't oversee anything in the investment portfolio, that was the CFO's responsibility," Stanford told Reuters in a 2009 interview. "The CFO had investment committees, the chief investment officer reports to him." Stanford, 61, has pleaded not guilty to 14 criminal counts of fraud, obstruction of a federal investigation and conspiracy to launder money. Among the alleged crimes prosecutors expect to prove to the Houston jury is that Stanford was involved in falsifying financial statements and made false statements about Stanford International Bank's financial condition. PAUPER IN LOVE Stanford's health has declined since his arrest. He was injured in a jailhouse brawl in 2009 and suffered from an addiction to a powerful anti-anxiety medication. He has hepatitis B and cirrhosis of the liver, and, if convicted, will likely spend he rest of his life in prison. The SEC seized all of Stanford's assets in February 2009 after filing a civil lawsuit. His lawyer at the time, Dick DeGuerin, said the government's action did not even leave enough money for his client to buy underwear. Once No. 205 on Forbes' list of richest Americans, Stanford's defense is paid for with U.S. tax dollars and his 81-year-old mother is struggling to help. "I've maxed out my credit cards and I'm on my last few thousand dollars of savings," said Sammie Stanford. She even had to do a reverse mortgage on her home "to get some extra cash," she said in December after a court hearing. After his arrest, Stanford had a bevy of women, four of whom are mothers of his six children, attend his court hearings. He had a "fiancee" half his age even though he remains legally married. Stanford lavished the women in his life with trips on private jets, luxury homes and, in one instance, spousal support payments of $100,000 per month, according to court documents. His oldest daughter, Randi, lived in a luxury Houston high-rise paid for by her father, for whom she worked. Court records from a 2007 paternity case, that was settled, showed Stanford also paid about $150,000 a year in child support for two other children who lived with their mother in a $10 million house in Florida. But now, in addition to losing his fortune, Stanford has only the support of his parents and family and not the harem of loyalists seen earlier. Only his mother lasted through the entire three days of testimony last month at a hearing in which Stanford was judged competent to stand trial. The man who once ran a business with operations in 140 countries has different priorities now. In a recent court hearing he could be heard complaining about being served a peanut butter sandwich on stale bread.

On a crisp Saturday morning last fall, Luis Valciente and Mercedes Martin enjoyed the quiet of their farm about 20 miles northeast of Seville. The retired husband and wife bought their patch of land in 1987, several years before Spain's first high-speed trains started running between Madrid and Seville. "It's very tranquil, which is what we like after all these years," Martin said through an interpreter. Without warning, a loud "swoosh" briefly interrupted the couple. It was one of Spain's AVE high-speed trains rushing on tracks about 100 feet from the rear of the couple's modest home. Within seconds, the noise subsided and the couple resumed their chat. To train passengers, the Valciente farm is little more than a blur about 10 minutes before they get to Seville, the southern terminus for the trains. Each arrival sends fresh activity through the station and a surge of cabs, cars and pedestrians onto the streets near the historic city's commercial center. Nearby restaurants, shops and rental-car agencies vie for attention from the arrivals. Spain's system connects urban centers and smaller provincial capitals while crossing fertile agricultural regions, much like California's planned high-speed rail system. In the countryside, Barcelona transportation engineer Andreu Ulied said, the Spanish government went to great lengths and expense to minimize the effect on farms. It skirted farmland where it could, built frequent overpasses and underpasses, and generously compensated owners who lost property to the project. In larger Spanish cities such as Madrid, Seville, Valencia, Cordova and Barcelona, stations for high-speed trains are in developed, central-city commercial districts. In Barcelona, preservationists' fears of a train tunnel under the Basilica de la Sagrada Familia forced extensive engineering measures to avoid damaging the iconic church. Most merchants near the stations say high-speed rail is good for commerce, but they are unsure whether it has directly helped their stores and restaurants. Ulied, economist Germà Bel and others say the prospects for economic gains by high-speed rail cities are murky at best, and at worst could bleed commerce from smaller cities between larger destinations. Valciente and Martin, who are in their 70s, tend to fruit trees and corn on their 6½-acre farm. The AVE trains speed by the farmstead several times an hour, "and it hasn't affected us at all," Valciente said. "We don't even feel them," Martin added. The trains create no wind turbulence, she said, and are less bothersome than slower, regional commuter trains. Conventional trains were there when Valciente bought the farm, but he doesn't think AVE trains affected his property value, and if neighbors have complaints, he hasn't heard them. High-speed rail raised little opposition from the agriculture industry. That experience stands in contrast to the objections by farmers in the San Joaquin Valley, where faith in the state rail authority and the economy are in short supply. Growers and ranchers say they fear losing farmland and homes, and worry the tracks will keep them from moving across their land. They also doubt they'll be fairly compensated for their property or troubles. Spanish officials worked with farmers to head off concerns, said Pedro Pérez del Campo, environmental policy director for ADIF, the government-owned company that runs the system. "It's in our interest to make it easier for the farmers," he said, noting the priority is to ensure farmers with divided property can reach all of the land. "About every 500 meters, there is the ability to pass from one side of the rail to the other. We are obligated that if the rails were to cross your property, we have to give you the ability to cross."

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, 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.”

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.’

Camelot said that the winner scooped the rollover jackpot of £40,627,241 in Friday night's draw although no one has yet come forward to claim the prize. A Camelot spokesman said: "This is fantastic news – we're absolutely delighted to have yet another huge EuroMillions win here in the UK. "We have plenty of champagne on ice and look forward to welcoming the lucky ticketholder into The National Lottery millionaires' club. "Over 2,800 people have become millionaires since The National Lottery began and, to date, our players have raised an amazing £27 billion and counting for National Lottery Good Causes." The success is the seventh biggest UK lottery win. The record is held by Colin and Chris Weir, from Largs, Scotland, who won £161 million on EuroMillions last July.

sheffield-born hard rock drummer Robbie France has died aged 52 at his home in south-east Spain, it has been reported. The Spanish national newsagency EFE quoted ‘family sources’ as saying that the musician, who played with such groups as Diamond Head, Alphaville, UFO, Skunk Anansie and Wishbone Ash, died on Saturday. It said he was buried on Wednesday at Puerto de Mazarron, in the province of Murcia, south of Alicante. Mr France had lived in the Costa Blanca resort for the past three years. He was born in Sheffield in 1959. In the 1970s he emigrated to Australia, returning to the UK in 1982 and joining the hard rock band Diamond Head. Three years later he became drummer with the UFO, replacing Andy Parker. He settled in Puerto Mazaron in 1998 after stints with Skunk Anansie and the German group Alphaville. Last year he published a novel, Six Degrees South, partly set in Mazarron. The report said that the family did not give the cause of death.

The pound posted its biggest weekly decline against the euro in almost three months and gilts dropped as French and Spanish borrowing costs fell at their first debt auctions after their credit ratings were cut. The yield on 10-year gilts rose the most in four months as demand for the relative safety of AAA government bonds eased amid signs global growth hasn’t lost momentum. Reports this week showed U.K. retail sales rebounded in December while U.S. initial jobless claims fell to the least in almost four years. Further advances in gilt yields may be limited next week before a report predicted to show the U.K. economy contracted in the fourth quarter of last year. “There are worries that the U.K. economy is heading back into recession,” said Michael Derks, chief strategist at FXPro Financial Services Ltd. in London. “It would not be surprising to see further weakness of the pound against euro in the near term.”