MARIANO RAJOY IGNORES CORRUPTION CHARGES IN GERMANY AS BBC REPORTS

Angela Merkel (R) and Mariano Rajoy address a press conference at the Chancellery in Berlin on 4 February 2013

AXJ SPAIN Commentary

According to this article by the BBC and Tom Burridge in Madrid, "it looks unlikely that the prime minister Mariano Rajoy of Spain will resign, even after the leader of Spain's main opposition party, Alfredo Perez Rubalcaba, has called for him to do so." We at AXJ in SPAIN don't understand how Mr. Rajoy can stay in power with an unemployment rate that has reached a record 26%, new cases of corruption within the Partido Popular (PP) and his government popping up every day, and demonstrations nationwide just increasing.

4 February 2013 Last updated at 10:59 ET

Spain's PM Mariano Rajoy pledges to battle on

Mrs Merkel said Germany would support Mr Rajoy's efforts to steer Spain through the crisis

Spanish PM Mariano Rajoy has fiercely denied corruption allegations, pledging that Spain will see off its worst financial crisis in recent years.

He said his Popular Party was committed to reforms that would steer Spain away from the financial crisis.

Mr Rajoy rejected opposition calls for his resignation after El Pais published images of documents allegedly showing secret payments to PP members.

He said the claims were "totally false" and denied receiving illegal money.

Speaking alongside German Chancellor Angela Merkel in Berlin, Mr Rajoy said his government remained strong and would overcome the accusations, which have sparked protests and an online petition for his resignation signed by 74,000 people.

"The government is stable. The PP has a majority," Mr Rajoy said. "It's carrying out its agenda based on reforms."

Mrs Merkel said Germany would support the Spanish government's efforts.

"I have the impression that the whole Spanish government is working to drive down unemployment, to push through structural reforms," she said.

But Spain's benchmark IBEX share index dropped 2.86% late on Monday amid worries about the corruption scandal and its potential implications.

Resignation unlikely

The central claim is that documents published by El Pais are a list of undeclared or secret cash payments linked to senior PP members.

A screenshot of the El Pais online edition, 31 January

El Pais splashed photos of the alleged ledgers on its website on Thursday

Until 2007, Spanish political parties were allowed to receive anonymous donations.

El Pais is adamant the ledgers, dating from 1990 to 2008, were written by the party's former treasurer, Luis Barcenas who stepped down after being implicated in a separate, high-profile corruption case.

Mariano Rajoy's name is written a number of times in the documents. Alongside his name are numbers totalling 25,200 euros for each year, from 1999 to 2008.

On Saturday, two days after the documents were published, the prime minister publicly denied ever having received any secret payments.

He said the allegations against him and his party were false.

Spain's chief prosecutor has said there could be enough evidence to investigate the allegations. but the PP has said it will take legal action against those responsible for what it says is a smear campaign, while announcing an internal audit of its finances.

The leader of Spain's main opposition party, Alfredo Perez Rubalcaba, has called for the prime minister to resign, but the BBC's Tom Burridge in Madrid says that as things stand that looks unlikely. The prime minister has said he will publish his earnings online.

Spaniards have been asked to accept painful austerity measures as the government battles to avoid an international bailout. Meanwhile, the unemployment rate has reached a record 26%.

Demonstrators took to the streets in Madrid, Barcelona and Seville on Saturday evening calling on Mr Rajoy to step down, with clashes with police in the capital.