21 October, 2013

By VIVA Team

Botin has said that Spain's economy is enjoying a fantastic recovery

“Everyone is interested in investing in Spain,” Emilio Botin – the CEO of Santander who was recently voted the most influential businessman in Spain – told a New York press conference last week when asked about the financial situation in the country.

It was a bold claim, but Botin, perhaps aware of the positive impact his words could have, was not to be deterred, adding that the country was experiencing a ‘Fantastic’ period of investment, with trust in Spain’s economy ‘growing unimaginably’…

“We’re getting money for the stock exchange, for debt, for investment,” he added. “You wouldn’t believe how things have changed in the last six months.”

Botin reserved particular praise for the labour reforms and financial measures imposed by the Spanish government, adding that the banking sector is now in rude health following a complete top-down overhaul of how the industry does business.

”Insolvent clients are no longer being lent to,” said Botin. “Spanish banks are eager once again to lend money to clients, but only good clients.”

While Botin was regaling the American press last week, closer to home the ruling Popular Party was facing fresh slush fund allegations as former PP treasurer Luis Barcenas gave evidence in court.

“It was my hand that gave the envelope to Ms de Cospedal,” said Barcenas via a video link from prison where he is serving time after being considered a flight risk when the scandal first broke. The envelopes, it is alleged, were stuffed with €7,500 of ill-gotten cash, and de Cospedal was, at the time, a close aide to Mariano Rajoy, Spain’s Prime Minister.

Payments of this ilk were, according to Barcenas, a ‘tradition’ within the party; a normal means of topping-up one’s salary. These latest accusations are sure to reignite the scandal that has been simmering for most of the summer, with PM Rajoy trying to distance himself from involvement by staying silent on the issue whenever asked.

The accusation from Barcenas came on the opening day of a civil suit filed by Ms de Cospedal against him. The trial is expected to generate some juicy, and rather uncomfortable, headlines for the Popular Party over the next few weeks.