Mariano Rajoy
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Spain Barcenas scandal: Mariano Rajoy rejects resignation calls

16 July 2013 Last updated at 12:33 BST

Spain's prime minister says he will not give in to "blackmail", amid calls for him to resign over alleged links to a suspect in a payments scandal.

Mariano Rajoy has denied ever receiving illicit payments and he is defying opposition calls to resign.

It comes on the day that his party's former treasurer came before a judge delivering more revelations in the scandal that has engulfed the Spanish government for months.

Pascale Harter reports.