Two hundred hearses from all over Spain processed through the centre of Madrid on Thursday in protest at municipal restrictions imposed on their businesses. The protest was organised by AFUES (Asociación Funeraría de España) which represents 3,200 small and medium sized businesses in the funeral sector. AFUES asserts that Town Halls impose impossible restrictions upon them so that they are unable to operate in large cities and, as a result only the large companies and, in some cases, the Town Halls themselves, have a monopoly. The march ended at the Economy Ministry building where they encountered support. The Minister, Rodrigo Rato, assured them that he understood their protest and stated that the government would meet with them to study a plan to open up the sector to free competition.

More than 20% of Spain's X-ray centres is operating illegally, according to the Nuclear Safety Council. More than ten months has passed since the deadline for these centres to be authorised but they still remain unregistered. With the attendant danger of excessive radiation both to patients and to medical personnel, the Safety Council has warned that 3000 centres should be closed.

The T.V. sector is in bankruptcy, according to Juan Luis Cebrián of Canal Plus and the PRISA group. His claim was made in the debate on public and private T.V. during the European Congress on Audiovisual Law, held in Seville. Cebrián said that the Spanish T.V. network loses more than 200.000 million pesetas a year and, he added, that some T.V. stations make up results and value stocks at 45.000 million when in one year they have only turned over 16.000 million. "What we might be experiencing is a repetition of the Mario Conde model - bankrupt companies and multimillionaire company presidents. Angel Durández of Arthur Andersen affirmed that in 1994 losses amounted to 150.000 million, not incluiding TeleMadrid or subscribers to RTVE. The Vice President of Antenna 3 was unable to attend but sent a communique saying that his company was in favour of establishing a sole digital T.V. platform. With respect to digital T.V., Cebrián said that Canal Plus will launch its digital platform next January and that it would be open to 50% public shareholding. Cebrián said that the investment would be loss-making for the first five years but that the loss would at least be financed by them and not by public money.

The judge for the National Tribunal, Javier Gómez de Liaño on Friday reported the existence of a gigantic corruption system in Spain which affects politics, the justice system, the economy and the world of finance. The judge affirmed that corruption in Spain equals that of Italy and France, causing a legal crisis but that it was being combatted by the actions of several magistrates, contrasting severely with the inadequacy of Parliament on occasions. When asked if Spain was governed by a group of judges, Liaño rejected this, accusing the Press of frequent and malicious misrepresentation.

On Friday the Government defined the criteria for re-organising the telephone system in Spain, which, at the level of technical detail, is likely to spark conflict for control of telecommunications between the major banks, Spanish industrial groups and several multi-national companies. The Royal Decree approves the existence of a second telecommunications provider through Retevisión. It will provide a basic telephone service, both fixed and mobile, the transmission of data and multimedia services, in other words, it will definitively end the monopoly of Telefónica. It is planned to privatize 80% of Retevisión. The group formed by Banco Santander, BCH and ENDESA have publicly registered their interest in what would entail an investment of 250.000 million pesetas. BBV has complained at the Government's decision not to allow shareholders in Telefónica to participate. Telefónica is curently controlled by the Stock Exchange 66.2%, The State, 21.3 %, BBV 5%, La Caixa 5% and Argentaria 2.5%. The profile of the second operator is one of specialist in mobile telephones, cable T.V. and inter-city and international data transfer. The typical consortium will include a prestigious national consortium, one or two international operators and several members from the world of finance.

In Spain, clocks went back by one hour at three o'clock on Sunday morning, bidding farewell to summer.

The Secretary of State for Communication, Miguel Angel Rodriguez, announced on Friday the government's plan to save 265.000 million pesetas in 1997 in its struggle against fraudulent social security and unemployment benefit payments. Of this amount 160.000 million corresponds to the amount saved by denying payment of 155.000 fraudulent unemployment benefit claims. The remaining 105.000 million correspond to irregularities within the Social Security system.

Within Europe, Spain has the greatest incidence of Aids per inhabitant and it is the first cause of death among its youth, due to drug taking. Spain, however, has invested very little in research into its prevention, according to the report issued by a team of experts on contagious diseases. The report finds that there is no money for research nor co-ordination between the health authorities of the autonomous communities, plus bureaucracy is another impediment. In June 1996 there were 40,061 reported cases and from 1981 to 1995, the number of deaths, due to Aids, rose by 53.3%. Given this situation the following recommendations were made: that there should be a centralisation of resources, support for projects in autonomous communities, a monitoring of the epidemic by the Health Service and, in the absence of research, at least the incorporation of Health Service results in order to educate future decision making by the Health Authorities, in this respect.

Francisco Alvarez Cascos, first Vice-President of the Government, recently re-married in a civil ceremony in Córdoba. The Archbishop of Toledo criticised the wedding saying that, in the eyes of the Church, his first marriage was not dissolved and therefore he was living in permanent and public adultery. Also the Archbishop of Madrid made reference to the marriage in a pastoral letter saying that the state of marriage was created by God and therefore it was not up to man to decide to dissolve an existing union and re-marry. In contrast, the Archbishop of Oviedo asked for respect for the union, saying that, while it did not conform with Christianity, rather than cause a scandal, society should exercise tolerance and respect. The Government, for its part, responded by saying that it does not make judgements on the private lives of anyone, including its members but it also asked for respect for all persons and institutions that had criticised the marriage saying that "in this country there exists freedom of conscience and everyone is entitled to behave as he thinks fit".

Iberia continues to face stiff competition internationally, more recently with the operation of Virgin Express out of Madrid. However, the near monopoly of internal flights is well and truly over with the extended service of both Air Europa and Spanair. Current tariffs of the three competing carriers on the Madrid-Málaga route for a normal tourist fare is Iberia 33.800, Air Europa 18.900 and Spanair 19.800.

The financing system for the Autonomic Regions during the next five years will not involve additional expenditure and will be less expensive than the previous one. With this statement, Rodrigo Rato has proved that, on top of being a seasoned parliamentary member, he has a notorious capacity for dialogue, extremely important when it comes to the relationship between the PP and the Nationalist wing of the government. He possesses a special skill for team working, which makes his "super-office" one of the few Offices with clear ideas y positive results. He also has a great talent for the political haggling, which have concluded in a historical agreement with the Unions for the future of Retirement pensions.

Jose Maria Aznar, the President of the Government, sent a clear warning to Jordi Pujol, President of the Generalitat of Catalunya, stating that his Administration has not made any commitment with CiU to return to Catalunya the proceeds from the collection of special taxes. Aznar stated sharply that "There is a difference between people who are interested in certain competition to obtain special tax returns and a commitment already done on the subject". Additionally, the President of the Government asked the political leaders to exercise responsibility in their daily activities, because "there are many things we are not allowed to play with".

Members and followers of HB keep the violence campaign going by intimidating different people from the PP, PSOE and PNV, the democratic parties in the Basque Country. Yesterday, they demonstrated in front of the PSE-EE headquarters. In the meantime, the City Hall at Irun denounced the distribution of pamphlets containing the name, addresses and home phone numbers of the councilmen from PP, PNV and PSE-EE. In the literature, they are accused of being "warders" and encouraged people to "beat them up".

Margarita Robles, former Secretary of State in the Home Office, stated that the Police force is not enough, and this is "the right time" to negotiate with ETA. "The terrorism from ETA will never end as long as we only have a Police response for them". She went even further, and declared that "this is the right moment to confront them with a solution based on a political point of view". Robles made her statements when leaving the Supreme Court, where she testified as a witness in the Lasa-Zabala case.

Salaries have risen by almost 4%, which is 6/10 higher than the predicted ECI. Almost six million workers have closed their labour contracts for this year, and among the conditions, there have been salary rises of 3.95%, a figure that is higher than the Estimated Cost of Inflation predicted for this year. The sacrifices accepted by the Unions for all their members, which has devalued their buying power, is worrying the Government, private Entrepreneurs and Monetary authorities.

The Executive Government has confirmed its doctrine about male supremacy to inherit noble titles, and from now on it will be unconstitutional to discriminate against women in the process of succession. The Civil Tribunal of the Supreme Court has stated that "The criteria based on male supremacy for the succession of noble titles will be unconstitutional, and Primogeniture will prevail in similar cases". Being this its eighth sentence on succession of noble dignity, which consolidates the doctrine that it’s against the Constitution to discriminate against first-born women. With this resolution, the Supreme Court has recognised the right to use the title of Marchioness of Oroquieta to Pilar Arrizabalaga with preference to her brother Luis, who is younger than her. He had unlawfully inherited the title.

Luxury resorts and hotels, a development with 3.000 homes, an sports pier and a golf course. This is the tourism enterprise that will be launched this month in San Lucar, with Alfonso de Hohenlohe among their sponsors. This area, has been recently excluded from the Special Protection Areas around Donana. Political parties, Environmental groups and even the Minister of Environment have strongly protested this change in the zoning division, approved by the Council of Andalucia.

The Popular Parliamentary Group have just taken the first step to change the category where the actual Criminal Code has the Corruption of Minors classified, and is asking to consider it again as a crime. Since the enforcement of the new Code, on 25 May, the offence has been considered a misdemeanour therefore carrying a less punishment. The new Penal Code was approved by PSOE. Now, the PP considers this Code as an "involuntary error" from the Legislator, and is asking Aznar and his Administration to pass an organic law which will protect minors from being exploited.

After three years, the Austrian Charitable Association has revived in Madrid the great Viennese Gala, sponsored by the Municipalities of Madrid and Vienna and the Austrian Tourism Office. This Gala is a replica of the traditional Ball for Debutantes of Vienna which in Madrid also has a fund-raising purpose and will donate the proceedings to Charitable organisations. This year, during the Gala, celebrated last Friday at the Palace Hotel, there was also a celebration for the millennium of Austria.