Party cash scandal hits Spanish PM
Pressure is growing on Spanish conservative prime minister Mariano Rajoy to explain how a former party treasurer amassed 22 million euros (£18.5m) in a Swiss bank account.
Although no arrests have been made or charges filed, the scandal is hitting Mr Rajoy, who is demanding sacrifices from Spaniards as the country battles to emerge from recession with 25 per cent unemployment.
His Popular Party has been equally shaken by widespread newspaper reports that the former treasurer, Luis Barcenas, also allegedly distributed under-the-table bonuses to party leaders from construction firms.
The Popular Party has denied all wrongdoing and promised it will commission an external audit of its finances.