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A8    world news
                   Thursday 27 July 2017
            Spanish PM Rajoy denies knowing about graft deals in party




            By ARITZ PARRA               fund  the  party.  Wednes-   secretary   general    until  officials  and  other  Popular  who  is  the  key  defendant
            Associated Press             day’s    highly-anticipated  2003, and its secretary gen-  Party  members,  including  in  the  case,  considered
            SAN  FERNANDO  DE  HENA-     hearing  was  the  first  time  eral until 2004, when the il-  two  former  treasurers,  are  one  of  the  largest  corrup-
            RES,  Spain  (AP)  —  Spanish  that  a  prime  minister  has  legal  funding  scheme  was  among the 37 accused of  tion  scandals  in  the  coun-
            Prime Minister Mariano Ra-   appeared  in  court  while  allegedly  still  operating.  “I  bribery,  money  launder-  try’s  modern  history.  Cor-
            joy  told  the  country’s  Na-  holding  office  since  Spain  never took care of the eco-  ing and tax evasion in the  rea faces a 125-year prison
            tional  Court  that  he  didn’t  transitioned to democracy  nomic issues in the party. I  “Gurtel case,” named after  sentence  if  found  guilty  of
            know  anything  about  the  four  decades  ago.  Rajoy  was  devoted  to  political  the  German  translation  for  controlling  the  network  of
            ruling  Popular  Party’s  ac-  himself  is  not  accused  of  activity,”  Rajoy  told  the  belt.  The  Spanish  word  for  aides and companies that
            counting  practices  when  wrongdoing, but the court  three  magistrates  during  belt is also the last name of  arranged  free  events  for
            a  kickbacks-for-contracts  called  him  to  provide  tes-  the proceeding.            Francisco  Correa,  a  busi-  the  party  in  exchange  for
            scheme  allegedly  helped  timony  as  the  party’s  vice  Businesspeople,   elected  nessman  arrested  in  2009  public contracts.q


            Britain’s economy stuck in low gear amid Brexit concerns



            By DANICA KIRKA                                                                                                     Retail  and  film  production
            Associated Press                                                                                                    showed  improvement,  the
            LONDON  (AP)  —  Britain’s                                                                                          ONS  said.  Motion  pictures
            economy hobbled along in                                                                                            were  the  second  biggest
            the second quarter, barely                                                                                          contributor  from  the  ser-
            recovering  from  a  weak                                                                                           vices  sector,  growing  by
            start  to  the  year  as  indus-                                                                                    8.2  percent.  Manufactur-
            trial  production  and  con-                                                                                        ing swung from 0.3 percent
            struction flagged amid un-                                                                                          growth in the first quarter to
            certainties  over  the  coun-                                                                                       a 0.5 percent decline amid
            try’s exit from the European                                                                                        a slowdown in car produc-
            Union.                                                                                                              tion.
            The  economy  grew  by  a                                                                                           The results also weaken the
            quarterly  rate  of  0.3  per-                                                                                      likelihood  that  the  Bank  of
            cent  in  April-June,  a  mea-                                                                                      England’s  Monetary  Policy
            ger  rate  that  is  barely                                                                                         Committee will raise interest
            above  the  0.2  percent  of                                                                                        rates from their record lows
            the first three months of the                                                                                       of 0.25 percent. Though in-
            year, the Office of National                                                                                        flation  is  above  the  2  per-
            Statistics said Wednesday.                                                                                          cent  target,  it  moderated
            Economists    have    been                                                                                          in June to 2.6 percent from
            downgrading  their  fore-                                                                                           a near four-year high of 2.9
            casts for Britain’s economy                                                                                         percent in May.
            as the country embarks on                                                                                           “The  confirmation  of  the
            the  process  of  leaving  the                                                                                      lackluster   performance
            European Union and nego-     British  Secretary  of  State  for  Exiting  the  EU  David  Davis  addresses  the  media  during  a  press   of the economy so far this
            tiating new trade relations.   conference in Prague, Czech Republic, Tuesday, July 25, 2017.                        year  surely  also  diminishes
            Wednesday’s  figures  show                                                               (AP Photo/Petr David Josek)  the  chance  of  an  interest
            that  the  economy,  which  economist.                    cast  for  British  economic  prospects  for  the  British  rate  hike  any  time  soon,
            had    initially   weathered  “They don’t look favorable  growth this year to 1.7 per-  economy.                    especially  as  growth  pros-
            well the uncertainty of the  at  the  moment,  given  the  cent from 2.0 percent pre-  Growth in the second quar-   pects  for  coming  months
            Brexit vote a year ago, is in  uncertainties  around  Brexit  viously.  Others  are  more  ter  was  driven  by  services,  have become increasingly
            a new, weaker phase.         and the pressure on house-   pessimistic,  with  financial  which  increased  by  0.5  skewed  to  the  downside,”
            “It’s  the  underlying  trends  hold  budgets  from  higher  services  firm  PwC  expect-  percent compared with 0.1  said Chris Williamson, chief
            that  matter,”  said  Lucy  inflation.”                   ing 1.5 percent.             percent  in  the  first  quarter  business  economist  at  IHS
            O’Carroll,  Aberdeen  As-    The International Monetary  Ratings  agencies  Moody’s  stretching  from  January  to  Markit,  as  he  focused  on
            set  Management’s  chief  Fund this week cut its fore-    has  also  warned  about  March.                          the second quarter.q


            EU court advised to reject Hungary, Slovakia refugee case




            By PABLO GORONDI             Hungary,    Slovakia,   Po-  Poland, which the decision  legality  of  the  relocation  migrants  in  Italy,  now  the
            Associated Press             land  and  Romania  voted  said  should  take  in  6,182  plan.  The  advocate  gen-   main  point  of  arrival  for
            BUDAPEST, Hungary (AP) —  against  the  2015  decision  asylum-seekers,  supported  eral’s position is often an in-  migrants  making  the  risky
            The European Court of Jus-   establishing  a  temporary  the  positions  of  Hungary  dication of what ruling the  Mediterranean  boat  cross-
            tice  should  dismiss  lawsuits  plan  to  relocate  120,000  and Slovakia.            court will likely make.      ing  to  Europe  from  North
            filed  by  Hungary  and  Slo-  migrants.                  Advocate  General  Yves  “One  thing  is  very  clear:  Africa, mostly Libya.
            vakia  challenging  a  Euro-  Under  the  deal  —  agreed  Bot,  whose  role  is  to  pro-  relocation  works  if  the  po-  Gergely  Gulyas,  a  deputy
            pean Council decision that  at  the  height  of  Europe’s  pose non-binding legal so-  litical  will  is  there,”  said  EU  leader of Fidesz, Hungary’s
            EU nations must take in hun-  migrant  crisis  —  Hungary  lutions for the court in cases  Migration   Commissioner  governing  party,  called
            dreds  of  asylum-seekers,  a  would have to temporarily  under his purview, rejected  Dimitris Avramopoulos.       the EU mandatory migrant
            court adviser said Wednes-   take  in  1,294  asylum-seek-  arguments  from  Slovakia  He  urged  EU  nations  to  quota scheme “illegal and
            day.                         ers and Slovakia 902.        and Hungary regarding the  step  up  efforts  to  re-house  inapplicable.”q
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