Spain

Rail safety has become a matter of criminal law rather than just logistics as the European Public Prosecutor's Office opens a fraud investigation into €200m of aid for the Urda route. Investigators are looking at contracts for the state rail infrastructure manager, Adif, following a series of accidents; meanwhile, the national operator Renfe reportedly shielded executive bonuses just hours before appointing a new president.

The timing is awkward for Prime Minister Pedro Sánchez, who has relaunched his campaign for the November 29th elections on a platform of exemplary conduct. The Socialist strategy of focusing on pensions and housing is being crowded out by the railway crisis and the Koldo corruption case, though polling suggests the opposition People's Party is also losing ground.

Elsewhere, the judiciary has delivered a rare blow to the prosecution in an embezzlement case involving former Prime Minister Zapatero's jewelry, with a judge dismissing the charges. In the supermarkets, the government is withdrawing specific olive oil stocks to control prices, though the rising cost of living continues to negate otherwise positive macroeconomic data.