Spain's industry minister steps down after Panama papers leak

Spain’s industry minister stepped down following a newspaper reports linking him to the controversial Panamanian law firm Mossack Fonseca.

According to Spanish daily El Mundo Jose Manuel Soria had links to a Jersey, UK-based company bearing a similar name to Panama-listed UK Lines, which was set up by Mossack Fonseca.

“All political activity should be exemplary, including when it comes providing explanations. When that is not the case, you have to take responsibility accordingly,” Soria said in a statement.

Soria initially denied allegations of any links but later backtracked following the report in El Mundo.

His resignation came as Spain girded itself for likely repeat general elections on June given so far inconclusive talks between the country’s main political parties aimed at crafting a coalition government.

Spain’s ruling PP party had been wracked by allegations and several court cases for graft and tax evasion involving both current and past members over the approximately last two years, leading to a sharp drop in public support for the centre-right party.

As a result, current Prime Minister Mariano Rajoy came under extreme pressure to take as hard a stance as possible on any new corruption cases.

In a recent televised interview Rajoy defended himself by saying that neither he nor one whom he had appointed had been involved in any of the alleged cases of corruption.

Those allegations and court cases also helped fuel the rise of the PP's extreme far-left rival Podemos, which is against many of the reform and austerity measures put in place by Madrid in the aftermath of the Great Financial Crisis.

Recent allegations of political graft also forced the regional president of Catalonia to step aside following the most recent elections held in that northeastern region of the Mediterranean country.