Emergency op for Maurice Boland

RADIO DJ Maurice Boland has thanked his fans for support after he was rushed to hospital for emergency treatment. The DJ, who launched his own station iTalk last year, suffered an infection in the lower colon, but is now back home and on the road to recovery. “It was great to get such an extraordinary amount of messages of support,” he told the Olive Press. “It got me thinking about how many expats are in hospital without anyone to visit them. “I’ve set myself a mission to get volunteers to visit sick expats in hospital.”

German man arrested after Málaga lawyer's body found in the boot of his own car

 

The lawyer, who has not yet been named, went missing last Friday.The lawyer's car where his body was found in the bootThe body of a lawyer, named as Salvador Andrés Reina, has been found in the boot of his car in Málaga. The lawyer had vanished in strange circumstances in Málaga last Friday and his body was found today, Thursday, in the boot of his own car, parked by the bus station in the city. Police say the man’s body shows evident signs of having suffered violence. A 50 year old German man, named with the initials P.R.B. has been arrested in connection with the case. He was arrested before the body was recovered on Thursday morning. It’s not been revealed if he was a client of the lawyer, or whether robbery was his motive. One theory the police are following was that there was a kidnapping which somehow went wrong. The police operation continues open. The Málaga Lawyers College issued a statement which said that Salvador Andrés Reina ‘had been assassinated when meeting his obligations as a lawyer, attending to his office, when a unknown man turned out not to be a client, but a thief and a killer’. The College expressed its sympathies to the family, his companions and friends, and thanked the police for their ‘very intense’ work in solving the case and detaining the suspect.

How Wall Street Bankers Use Seamless To Feast On Free Lobster, Steak, And Beer

A former Morgan Stanley banker recently described his weekend food-ordering ritual at the height of the recession. While pulling Saturday hours, for example, he'd log onto the bank's account on Seamless, the online food-ordering service, and redeem his meal allowance--plus a few allowances from phantom coworkers who weren't actually in the office, allowing him to eat well above his pay grade. Sure, someone could have cross-checked actual office attendence with the online orders, but is such effort worth the investment bank's time? "If people weren't around, it was totally acceptable to take their allowance, and pool it together when you ordered," the banker recalls. "Almost every weekend I was at the office, I'd have a $90 dinner of steak, lobster, mac & cheese, and calamari." Until several years ago, corporate giants like Morgan Stanley made up roughly 85% of Seamless's customer base. That figure has now tipped in favor of individual consumers, but enterprise clients still represent a significant (and growing) part of the New York-based company's revenue--companies offer Seamless as a benefit to those who typically work long or late hours. But for employees of these roughly 3,500 corporate Seamless customers, the benefit represents a huge opportunity to game the system. And no one has worked the system for financial gain better than Wall Street hustlers. "Abuse of the system was rampant," recalls another former Morgan Stanley staffer. "I added up how much I ordered in my first year: It was more than $3,000 of food." Here's how it works. Typically, junior professionals are allotted about $25 per meal at the office. But there are tricks to leverage this cash on Seamless. If employees want to order dinner, for example, they have to stay until 8 p.m. "But you could still order for a 7 p.m. delivery at 6 p.m., then call the restaurant directly and tell them to bring it right away," one employee says. "So I'd finish work around 6:30 p.m., hit the company gym, and then grab my sushi--spicy tuna rolls--on the way out." A Seamless Scam How Gordon Gekko Orders On Seamless 1// Top Seamless Fiend According to Seamless' statistics, the highest ordering corporate user placed more than 2,600 orders in 2011, or more than 7 meals per day. 2// Top Cuisine By Industry Employees Investment Bankers: Sushi; Educators: Pizza 3// Top Ordering Patterns Corporate dinner-orders in New York's Financial District peak at 8 p.m. In Midtown, corporate orders peak at 7 p.m. Corporate dinner-orders are higher, on average, from 4-5 p.m. and lower between 8 p.m. and 9 p.m. Ordering groceries on Seamless was--and likely still is--another practice. (Representatives at Goldman Sachs and Morgan Stanley have not responded to requests for comment.) One employee, who lived by Morgan Stanley's Midtown offices, would even remote into her office computer from her apartment, place an order on Seamless, and then call the restaurant and change the delivery address to her apartment. The lobster-loving Morgan Stanley banker's take on that old switcheroo? "Classic." Another trick: Since employees aren't allowed to order beer or alcohol on the system, it's not uncommon to pool money together, place a large order for random items, then call the store and request that they bring beer instead. "We definitely get a lot of random orders," says Seamless CEO Jonathan Zabusky. "Once in a while, I'll sit on the customer-care desk, just to get a feel on the pulse of what's going on. You see these orders come through, and you're like, 'Why are 20 rolls of toilet paper going to 200 Vesey Street [the World Financial Center]? What the hell?'" One former employee at Morgan Stanley said he wasn't sure how pervasive the "switch-for-beer order" was at the investment bank, but said he personally pulled the move several times. "Wow, I feel so lame now because when I'd order from Seamless, I'd just get dinner," says one former Goldman Sachs employee. "I never heard of anyone else pulling a fast one [like that], but that doesn't mean it never happened." The daily Seamless stipend is considered sacred for employees, and any abuse of the system appears generally overlooked by higher-ups. When Lehman Brothers went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] John Mack 'Da Knife' and a collection of analysts. One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack. "What a baller," an employee says. Zabusky is sure abuse exists on Seamless, but says it's not likely that widespread. "I think it's pretty funny," the Seamless chief chuckles. "I mean, I know it probably frustrates a CFO at Goldman, who is giving these guys $25 to order while they work on deals, and they're ordering toilet paper and jars of mayonnaise and all this other stuff. But in the overall scope, it's probably pretty small." Small as the abuses might be in terms of Seamless's bottom line, there's no doubt it has a big impact on the morale of employees, who seem to take pride in manipulating money one way or another. According to Seamless's statistics, for example, the highest ordering corporate user placed more than 2,600 orders in 2011. "There's nothing grosser or more magnificent than eating $25 of delivered Taco Bell under the fluorescent, sober lights of an office building," says one employee. "Do you have any idea how much baja sauce you can get for that money?"

San Diego tax preparer for the wealthy accused of ordering hit on 2 witnesses in fraud trail

 former Internal Revenue Service agent whose tax preparation business catered to a wealthy clientele is accused of ordering at least two former customers killed as they prepared to testify against him on fraud charges. Federal prosecutors say the targets were key witnesses against Steven Martinez, 50, who was charged last year with stealing $11 million by preparing bogus tax returns for his customers. 0 Comments Weigh InCorrections? Personal Post Martinez’s limousine driver — Norman Russell Thellmann, 64 — was charged Monday with conspiracy to tamper with witnesses. Prosecutors allege he was ordered to deliver money to a hit man who was promised $100,000 for the two killings. Martinez did not enter a plea during his initial court appearance Monday on a charge of witness tampering. A federal magistrate judge ordered him held without bail. “I find it almost impossible to believe,” said David Demergian, his attorney. Martinez, an IRS agent from 1988 to 1992, faces a pretrial hearing March 19 on federal fraud charges and was free on bail until his arrest last week. An FBI agent’s affidavit says Martinez gave a former employee documents on four people about two weeks ago, including photos of one target from the wealthy suburb of Rancho Santa Fe and another target’s condominium in the upscale La Jolla area of San Diego. Martinez recommended the former employee use two different pistols for the killings and get a silencer, according to the affidavit. The former employee contacted the FBI, which recorded a meeting Thursday in which Martinez allegedly gave additional instructions like how to break into the La Jolla condominium. The targets were identified as 86-year-old Monique Siegel of La Jolla and Marianne Harmon of Rancho Santa Fe. The fraud complaint alleges that Martinez told customers to deposit their taxes into one of his bank accounts, promising to forward the money to state and federal authorities. He stated lower income on their tax returns without telling them, allowing him to pocket $11 million. The complaint identifies victims only by their initials. One “M.H.” had an income of $20.7 million in 2006 but Martinez filed a tax return for $2.1 million. One “M.S.” earned $200,046 in 2006 but Martinez’s return reported $32,900. Another customer who earned $12.2 million in 2005 reported income at $1.6 million, according to the complaint. The same customer earned $11 million in 2006, also reported as $1.6 million. Demergian, his attorney, said the fraud case was “certainly very defensible.” “He had a very dedicated loyal clientele,” Demergian said. “He was very successful.” Thellmann, who was arrested Friday night, told the FBI that Martinez sold him a limousine about three years ago and hired him as a chauffeur. He said Martinez told him to give $40,000 to a person who would call him with code. Thellmann denied he knew the money was to pay a hitman. FBI agents found $42,400 cash in a cereal box at his home.

Ponzi fraud: two men found guilty of involvement in £115m UK scam

Two men have been convicted of involvement in the UK's largest Ponzi fraud, which saw hundreds of people – among them the former cricketer Darren Gough and the actor Frances de la Tour – lose £115m. John Anderson, 46, and Kenneth Peacock, 43 were found guilty of unauthorised regulated activity at Southwark crown court in London on Monday, but were cleared of one count each of fraud. The jury is still deliberating over allegations that they deceived investors. The scheme's mastermind, Kautilya Pruthi, 41, of Wandsworth, London, has pleaded guilty to the fraud and is due to be sentenced later this week. Ponzi frauds – which take their name from the Italian conman Charles Ponzi, who was particularly fond of employing the scheme – use cash from new investors to pay returns to existing investors and depend on a constant stream of new investors to fund the payouts. The court heard that Gough and the actor and singer Jerome Flynn are each thought to have lost up to £1m in the fraud, which also duped De la Tour. Victims handed over their cash to Pruthi, who promised them safe investments with returns of up to 13%. Instead, he spent their money on entertaining women, paying his daughter's private school fees and chartering helicopters. He also bought a private jet and built a car collection that included three Bentleys, a Lamborghini, two Ferraris, two Mercedes, a Rolls Royce, a Jaguar and a Maserati. "Mr Pruthi is believed to be the UKs most successful Ponzi fraudster," said David Aaronberg QC, prosecuting. "He obtained some £38m from investors and caused contractual losses of over £115m." Aaronberg added: "He enjoyed the company of women and was generous in the payments he made to a number of female friends, for whom he bought cars as presents, in total giving them £373,149." Indian-born Pruthi came to the UK in 2004 having been deported to his homeland after serving a sentence for faking documents in the US. Jurors heard that on coming to the country, Pruthi was quickly able to pose as "a wealthy individual". After setting up his company, Business Consulting International, said Aaronberg, Pruthi accepted deposits and "orchestrated a large-scale and sophisticated collective investment scheme". He would send personally tailored emails claiming he could offer up to 13% returns on 12-month investments because the scheme was available to a limited clientele. But in reality, said the prosecutor, he was "robbing Peter to pay Paul". Pruthi, who was not registered with or authorised by the FSA, admitted four counts of obtaining money transfers by deception, one of participating in a fraudulent business, one of unauthorised regulated activity and one count of converting and removing criminal property. Peacock, of West Hampstead, north London, and Anderson, of Surrey, are alleged to have acted as "aggregators" who pooled funds from third parties and then passed them on to Pruthi, who had duped them into the fraud at the outset. Eventually the scheme collapsed as there were not enough new investors to bring in the money needed to keep the old investors happy. "The scale of this scheme was vast and the losses were immense; several investors lost their homes, others have been declared bankrupt," said Aaronberg. "The monies which Pruthi received were generally not invested anywhere, neither in the UK nor abroad." According to the prosecution, of the £38,631,792 Pruthi obtained, £28m was used to pay back other investors, while £10m was siphoned off for Pruthi's "lavish lifestyle".

Deadlocked Stanford Fraud Trial Jury Told to Keep Deliberating

 

The judge in R. Allen Stanford’s fraud trial ordered the jury to return to deliberations after the panel sent a note saying it couldn’t reach a unanimous verdict in its fourth day of reviewing the evidence. The eight men and four women on the jury told U.S. District Judge David Hittner in Houston yesterday they were “unable to reach a verdict on each of the 14 counts,” the judge said, reading their note to attorneys for both sides. Enlarge image R. Allen Stanford, accused of leading a $7 billion investment fraud scheme, gestures as he exits the Bob Casey Federal Courthouse in Houston, Texas. Photographer: F. Carter Smith/Bloomberg Hittner instructed jurors to “continue your deliberations in this case,” telling them the trial has been costly in terms of both time and money, that the lawyers were unlikely going to be able to put on a better trial and that another jury was unlikely to be more conscientious. “It is your duty to agree upon a verdict if you can do so, without surrendering your conscientious opinion,’” Hittner told them. Stanford, 61, is accused of leading a $7 billion international fraud scheme involving the sale of certificates of deposit issued by his Antigua-based bank. He faces as long as 20 years in prison if found guilty of the most severe charges, mail fraud and wire fraud. The financier maintains he is not guilty. After the jury returned to deliberations, lead prosecutor Gregg Costa told the judge the jury’s note could be construed as meaning it couldn’t agree on any one of the 14 counts against Stanford or upon all of the counts. ‘We’ll See’ While acknowledging the possibility of having to accept a partial verdict, Hitter said, “We’ll see what comes out next.” When Hittner instructed the jurors to “take all the time you may feel necessary” to reach a verdict, one of the jurors grimaced. The jury left for the day yesterday after being told to resume deliberations. Jury selection in the case began Jan. 23 and the panel heard five weeks of evidence. The government presented testimony at from investors who bought the allegedly fraudulent CDs as well as from the executives who helped sell them. The witnesses included government officials and former Stanford Group Co. Chief Financial Officer James M. Davis, who pleaded guilty to fraud-related charges in 2009 and testified for five days against Stanford. Davis, whose relationship with Stanford traces back to when they were Baylor University roommates, told the jury he knew the boss was committing fraud and didn’t stop it. The defense presented former Stanford employees who said they saw no evidence of fraud at the company. Some offered testimony in support of the defense’s contention that Stanford was an absentee visionary who left the details of running his operation to Davis. Stanford didn’t testify during the trial.

Mandela faces fraud charges

The liquidators of Aurora Empowerment Systems, which is accused of asset-stripping bankrupt Pamodzi Gold, will lay charges of fraud this week against Nelson Mandela’s grandson Zondwa, and Ahmed Amod, an attorney for the company. The liquidators are also said to be planning to lay charges this week against Aurora chairman Khulubuse Zuma and possibly other directors under section 424 of the Companies Act, under which directors can be held personally liable for company debts. The charges follow a threat by the liquidators to lay charges of perjury against Thulani Ngubane, a director of Aurora, after he gave evidence at an inquiry.

AN expat gangster has fled his £3million Spanish villa amid claims his life has been threatened by the Russian mafia.

 

 Pat McCadden hasn’t been seen at the Marbella mansion for weeks and his cleaner has told callers he has moved to South Africa. The convicted drug dealer – nicknamed Pat the Rat – is said to be living in fear after a bootleg tobacco deal turned sour. Underworld sources claim McCadden is wanted by a Russian gang who claim he ripped them off in a plan to smuggle cigarettes and tobacco to Ireland. One said: “McCadden is terrified. He has been missing for weeks and has only spoken to his cleaner. “He struck a deal with some Russians to smuggle tobacco into Ireland but they accused him of ripping them off. Now he’s been told there is a price on his head. “He has told her to tell anyone who calls that he has moved to South Africa.” No one answered the door when the Sunday Mail called at McCadden’s mansion last week. It’s a stone’s throw from the exclusive Las Brisas Golf Club, where Sean Connery was a regular when he lived on the Costa del Sol. Post and junk mail remained uncollected in the post box outside the property. There were no cars on the drive behind the metal gates and high hedge which surrounds the front of the house. A postman said: “I’m still delivering letters in Mr McCadden’s name but I’ve never seen anyone here.” A neighbour added: “Pat lived at the house with his family but they haven’t been around for five or six months at least. “Someone’s looking after the house and they’ve told us he’s gone away.” Another neighbour in the upmarket estate of Nueva Andalucia said: “I used to see Mr McCadden quite a bit and he seemed pleasant. I haven’t seen him for ages.” McCadden, jailed for 10 years in 1985 for drugs trafficking, has lived in Spain for more than 10 years. He spent most of 2006 on remand accused of the attempted murder of a Spanish police officer in December 2003. The officer was gunned down during a shootout with two men who moments earlier had shot British expatriate businessmen Luke Miller in the leg. McCadden was in jail for almost seven months before being released on bail while a judicial probe continued. But a judge dismissed the case against the Glaswegian after witnesses failed to identify him and there were also problems with DNA evidence. A source at Malaga’s Policia Nacional, which covers the Marbella area, said: “There’s nothing outstanding against Pat McCadden that we’re aware of at the moment.”

Spanish tax authorities are cracking down on tax offenders

Hacienda has announced it will be keeping a close eye on fiscal engineering from e-commerce firms trading on the Internet. The Agencia Tributaría will also be keeping a close watch on sportsmen and women and artists. A new anti-fraud plan also includes alerts for contraband tobacco and the Secretary of State for Hacienda, Miguel Ferra, says they expect to recover 8.171 billion more from the measures. Hacienda has been told it cannot take on staff but it can substitute one in ten of the retirees. The number of inspections on elite sportsmen will go up by 14%, there will be greater control on house rental and undeclared businesses, using evidence of electrical consumption. Hacienda is also looking more closely at people who declare themselves insolvent when they are not, when they hide their assets. The use of preventative embargoes is to be extended, and offenders who fail to pay their debts to the fiscal face prison. Hacienda has established also new agreements with fiscal authorities in Switzerland, Andorra, Pánama, Bahamas and the Dutch Antilles.

Makers say 'sorry' as excessive vitamin D found after dog food recalled from 190 Mercadona stores

 

A Brand of dog food in cartons sold by Mercadona has been blamed for causing kidney failure in pets. The supermarket chain – the largest in Spain – has now withdrawn carton-packaged Compy wet dog food from its shelves in 190 stores in Albacete, Almeria, Alicante and Murcia provinces. This action followed a flood of concerns from dog owners – including scores of expatriates – after their pets had been taken ill, with some vomiting violently. On Tuesday, four days after Mercadona had withdrawn the food from sale as a safety precaution, a statement from Tunilament pet division, which is part of Escuris, the company that manufactures Compy, confirmed tests on the pet food had confirmed excessive Vitamin D. They admitted that this Vitamin D increment could cause urine problems to pets, although only through high doses or persistent use of the product, according to the manufacturer’s veterinarian reports. Earlier, vets and many expatriates had identified Compy wet dog food in aluminium-lined cartons and sold by Mercadona as the common link between dozens – and possibly hundreds – of complaints by dog owners over sick pets. There were even reports by expatriates living in the Costa del Sol, but a Mercadona official gave assurances that the Compy product packaged in these cartons was not sold by them in Malaga Province. British-born Audrey Millar of Benitachell (Alicante) said her three dogs (Shih Tzu, aged 7 yrs, 4.5 yrs and 20 months - Teddy, Shakira and Latika respectively) had always eaten “the Mercadona dog food in the big tins priced at €1.25 a can.” “When the packaging was changed to cartons (indivisible packs of 3) they were less than enthusiastic about the food but did eat a bit - I mix it with Burns Mini Bites dried food for them.” “Within a couple of days they started to vomit violently (thank God for tiles!) and refused to eat the food.  I took them to the vet and she thought initially that they may have ingested pesticide as she had had a couple of other local dogs in with the same symptoms.” “She ran renal function tests on two of them and their urea and creatinine levels were raised.  “ “She did not consider it worth running the blood tests on the third one (Latika) as she had the exact same symptoms I then started cooking chicken/turkey/ brown rice/vegetables for them until their stomachs settled but I will continue to cook for them now.  All have lost a little weight but are almost completely back to normal although Latika was sick last night - they are on Uro Can tablets to protect their stomachs.” “Thanks for bringing this into the public domain - I am glad Mercadona seem to be taking it as seriously as they should be and let's hope they are willing to reimburse customers for vet's fees incurred - I know it has cost some people 100s of Euros and, worse still, some people have lost their beloved pets due to this fiasco. “And there is the cost of all the cleaning products I bought from them to clear up piles (and it was) of dog vomit for a couple of weeks!” “I feel quite guilty to be honest, as I know other pet owners do - like I have been poisoning them really. “ Meanwhile, Veronica Catala of Clinica Veterinaria Benitachell said she had seen 10 to 15 cases of dogs with kidney problems in the last two months, and the majority of dog owners – including Ms Millar - had fed pets with the Comfy dog food in cartons. Inka Labsch of Clinica Veterinaria Europa in Mojacar (Almeria) confirmed that in the last month there had been a huge rise in the number of dog owners bringing in pets suffering from kidney problems. “In the past month there have been nearly 10, and quite a few otherwise young and healthy animals.” Tests to see if the kidney problems was caused by Leishmaniasis came back negative, a vet told EWN. “At one point we thought it might have been caused by pesticide used to combat the Red Weevil Beetle plague we have here,” said Inka. “But then I heard that other vets in other towns were experiencing similar unusual numbers of young dogs with kidney problems, so I do not think it is that. Many of the dog’s owners say they feed their pets with Mercadona’s Compy brand wet dog food,” said Inka. Various pet owners’ who feed their dogs this pet food confirmed this. One of Inka’s patients is ‘Goldie, who is on a drip for five hours a day after tests showed she had kidney problems. Ken Grey’s five-year-old white German Shepherd ‘Gemma’ started to develop symptoms, which include excessive thirst. His partner Georgette Hurcomb took Gemma to the vet in Garrucha who confirmed the kidney problem. “I personally know of at least six dogs who all eat the same brand of dog food who have this problem, although I understand there are at least 20 dogs who may be affected, one of which died,” said Georgette who lives in Palomares. “We drink the same water as the dogs and they only eat this brand of dog food.” “I made a complaint to Mercadona and a representative contacted us very concerned and said they would take the dog food off the shelves and would conducting tests.” Jamie Moore’s dog Tyson was diagnosed with ‘bad kidneys’ by the vet in Turre. “I did not think it could have been the food from Mercadona as my dog has eaten this brand of food for many years,” said Jamie. “But since its packaging changed, he has had a reaction.” Albox resident, Heather Whythe’s dog ‘Scruffy’ fell ill after a week of eating the ‘trozos in salsa’. “Since switching to another dog food, she is now back to her normal self,” said Heather. Chris Reade realised something was wrong when his dog began drinking excessively, suffered from urinary incontinence and went from 20 kilos to 16 kilos. “No definite diagnosis was found, although liver and kidney function results were abnormal. I immediately took the dog off the meat and with complete rest and a diet of chicken and rice she is thankfully on the road to recovery.”

Spain’s Deficit Tests Europe’s Financial Rules

 

ONLY months after they tightened the rules for the euro, Europeans are again confronting a question posed a decade ago: Is their rule book in fact a little stupid? In 2002, Romano Prodi, then the president of the European Commission, provoked widespread criticism by using the word “stupid” to describe the Stability and Growth Pact, a set of rules intended to maintain the stability of the euro zone by imposing fiscal discipline on member states. Now Spain is pressing for leniency, using more polite language but a similar argument. Deep in recession, Spain is not close to hitting European Union target dates for cutting its budget deficit to acceptable levels. And that, according to the logic of the new rules, ought to begin a process leading to the imposition of fines against Spain’s government. Euro zone finance ministers are set to discuss Spain’s economic situation Thursday in Brussels. It may come up again when European heads of government take part in a two-day meeting to discuss policies intended to increase economic growth. The new center-right Spanish government led by Prime Minister Mariano Rajoy faces a severe economic squeeze. To hit the European Union’s deficit target it would need to impose another austerity package that, according to estimates, would be more than double the 15 billion euros, or $20 billion, of tax increases and spending cuts already agreed to this year. And Spain is entering its second recession since the sovereign debt crisis began and is struggling with an unemployment rate of nearly 23 percent. But the European authorities face a dilemma, too. The Spanish case illustrates a design flaw in the euro rule book — fining a nation in financial trouble can only make matters worse. Even insisting on more austerity could drive Spain over the edge. Inaction, however, could threaten the credibility of the revised rule book when financial markets remain nervous. While the European Commission, the executive body of the 27-nation European Union, has issued tough warnings to some smaller nations, including Hungary — which is outside the euro zone and subject to different sanctions — Spain is the first large country to run afoul of the strengthened rules. The issue is particularly delicate because when France and Germany violated the original pact in 2003 by running up excessive deficits, the agreement was softened. And some policy makers have said that is one reason euro nations did not weather the financial crisis better. Last year the pact was strengthened to make sanctions more difficult to avoid and to make overall debt levels a bigger factor in determining whether penalties should be applied. Jean Pisani-Ferry, director of Bruegel, an economic research institute in Brussels, said Spain posed a substantial test for the new rules. “It is big because it is a bigger country and this is a tough case: how to reconcile fiscal discipline and economic realism,” he said. “Spain is facing a true recession,” he added, with estimates that its economy will continue to contract. “The commission is forecasting minus 1 percent, the Bank of Spain minus 1.5 percent, and there is no shortage of people forecasting even less. I think they should be careful at a time when they are embarking on a large number of reforms.” But Mr. Pisani-Ferry added that the European Commission had latitude in determining whether a country had violated the new rules. The commission will recommend how to proceed, and, if it has determined that Spain has tried its best to meet the target dates but has been blown off course by events outside its control, the European Commission can propose new target dates. Under the Stability and Growth Pact, European nations are supposed to keep their budget deficits below 3 percent of gross domestic product and their debt levels below 60 percent of G.D.P. Spain’s target was a deficit of 6 percent of G.D.P. in 2011, 4.4 percent in 2012 and 3 percent in 2013. On Monday, though, the Spanish government said it ended 2011 with a deficit of 8.5 percent of G.D.P. Speaking in Brussels on Wednesday, the president of the European Commission, José Manuel Barroso, said he was awaiting more information from Madrid, and the new Spanish budget, due to be presented in March. “The reality regarding Spain is that we do not yet have a full picture of Spain’s fiscal slippage last year and the reasons for that slippage,” Mr. Barroso said. “Only then, when we receive the concrete information, we’ll be able to take a position.” He expressed confidence that the new budget “will be fully in line with the Stability and Growth Pact rules.” The national government in Madrid has blamed Spain’s regional governments, estimating that they accounted for about two-thirds of the slippage last year. The regions ended 2011 with an average deficit equivalent to 2.94 percent of G.D.P., compared with a target of 1.3 percent. Spain is one of at least 23 European Union nations in violation of the bloc’s rules, subject to what is known as “excessive deficit procedure,” with closer monitoring and clear targets. But it was already given the benefit of the doubt in December 2009, when it was allowed an extra year to reach the 3 percent deficit level. All of which makes for a difficult decision for the commission, which must walk a tightrope between squeezing Spain’s economy too much and undermining the new rules. Mr. Pisani-Ferry said he believed that it should worry more about the first of those factors than the second. “Credibility rests also on the fact that what you do is economically sensible,” he said.