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Spanish Prime Minister rules out resignation over scandal.

Mariano Rajoy said on Monday that he is not considering resigning after opposition leaders called for his resignation due to a scandal over the alleged illegal financing of his People's Party; "I will defend political stability and I will fulfill the mandate given to me by the Spanish voters," said the Prime Minister.

Spanish Prime Minister rules out resignation over scandal (Photo: SERGIO PEREZ)

By Fiona Ortiz

MADRID, July 15 (Reuters) Spanish Prime Minister Mariano Rajoy said on Monday that he is not considering resigning after opposition leaders called for his resignation over a scandal concerning the alleged illegal financing of his People's Party.

"I will defend political stability and I will fulfill the mandate given to me by the Spanish voters," Rajoy said at a press conference.

He said the scandal would not derail his political reform program.

Pressure on Rajoy increased on Monday with the testimony of a once-trusted aide before a judge regarding allegations of illegal financing of the ruling party.

Rajoy, who is battling an economic recession and trying to plug a hole in the budget, has so far limited the impact of the scandal regarding allegedly illegal donations made by construction magnates, which were supposedly distributed as cash payments to party leaders in exchange for lucrative contracts.

At the center of the scandal is the party's former treasurer, Luis Bárcenas, 55, who was arrested in June on charges of corruption, money laundering, tax fraud and other crimes.

A High Court judge questioned Bárcenas behind closed doors for more than three hours on Monday.

A lawyer involved in the case told Reuters that the former PP treasurer should hand over documents showing how he operated a secret fund within the party for many years.