Did the King of Spain try to seduce Princess Diana?

 

WHEN Prince Charles and Princess Diana accepted an invitation to spend a summer holiday with the king of Spain the shadow of Camilla Parker Bowles already loomed over their marriage. Perhaps Diana confided in Juan ­Carlos or he simply sensed her vulnerability and unhappiness. In any case it’s claimed in an explosive new book that the king seized his opportunity when Charles’ back was turned and made a pass at Diana. The book alleges the seduction was attempted in Mallorca in 1987. At the time the royals of Britain and Spain regularly played happy families together but it’s now claimed both marriages were elaborate shams. Charles’ infidelity pales into insignificance alongside the behaviour of the Spanish king if the book The Solitude Of The Queen is to be trusted. It’s claimed Juan Carlos, 74, is a serial philanderer who has a loveless ­marriage to Queen Sofia, mother of his three children, and has used his power to sleep with 1,500 women. Intriguingly the allegations about the handsome Juan Carlos and the beautiful British Princess were first aired a few years ago by royal biographer Lady Colin Campbell. Prince Charles’ infidelity pales into insignificance alongside the behaviour of the Spanish king if the book The Solitude Of The Queen is to be trusted. She asserted that the pair were occasional lovers, also ­having a brief fling the previous year on a cruise, and that Diana fell into the king of Spain’s arms to take revenge on her own straying husband. Photographs from the period show Diana was clearly relaxed in the company of Juan Carlos. In one informal pose she’s seen sitting on a settee with him, wearing an off-the-shoulder dress, while Prince ­William sits between the king’s legs. 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 in a gesture that left Diana looking flustered. Rumours of an affair have always been derided but the new claim that Juan Carlos and Queen Sofia, who celebrate their golden wedding in May, have not shared a bed for 35 years is bound to fan the flames. Normally the royal family in Spain is out of bounds for gossip columnists because an attack on the monarchy is regarded as an attack on democracy.

Spanish Cleanup Plan May Backfire on Banks

 

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.

Spain's fast rail forestalled problems for farms

 

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."

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.”

World Bank warns emerging nations to prepare for slump

In a report sharply cutting its world economic growth expectations, the World Bank said Europe was probably already in recession. If the euro area debt crisis deepened, global economic forecasts would be significantly lower. "The sovereign debt crisis in the eurozone appears to be contained," Justin Lin, the chief economist for the World Bank, told reporters in Beijing on Wednesday. "However, the risk of a global freezing-up of the markets and as well as a global crisis similar to what happened in September 2008 are real." The World Bank predicted world economic growth of 2.5pc in 2012 and 3.1pc in 2013, well below the 3.6pc growth for each year projected in June. "We think it is now important to think through not only slower growth but sharp deteriorations, as a prudent measure," said Hans Timmer, director of development prospects at the bank.

Royal Navy captures 13 Somali pirates

 

The Royal Navy has captured 13 Somali pirates in the Indian Ocean, the Ministry of Defence says. RFA Fort Victoria and a US Navy vessel intercepted the pirates' boat, which had refused to stop despite warning shots from a Royal Navy helicopter. Royal Marines in speedboats approached the vessel and boarded it, capturing 13 pirates and seizing weapons. Defence Secretary Philip Hammond said the UK troops, part of a Nato-led force, could be "proud" of the success. "The Royal Navy and Royal Marines are playing a crucial role in securing and protecting international sea lanes that are vital to global trade," the minister said. The dhow was identified as a known pirated vessel operating in Indian Ocean shipping lanes Capt Gerry Northwood, who leads the counter-piracy operation on RFA Fort Victoria, said: "This firm and positive action will also send a clear message to other Somali pirates that we will not tolerate their attacks on international shipping." The operation was carried out around dawn on Friday. Capt Shaun Jones RFA, commanding officer on RFA Fort Victoria, said: "To manoeuvre such a large ship at speed in close vicinity of a nimble dhow takes extreme concentration and skill; my team were never found wanting. "The 13 Somalis certainly found Friday 13th unlucky for them.

Child benefit cut will go ahead, says Osborne

 

Chancellor George Osborne has said child benefit for higher rate taxpayers will be removed, after ministers' hints the policy could be made "fairer". But he said he would set out in the next months how the policy would be implemented. David Cameron acknowledged there was an issue with the £42,475-a-year threshold - amid criticism the changes unfairly hit single earner families. Labour said the policy was "unravelling already" and was an "utter shambles".