MARIANO RAJOY, the Spanish prime minister (pictured), played host to his Polish counterpart, Donald Tusk, today, but nobody was watching. Instead all eyes were on Madrid's National Court, where the former treasurer of Mr Rajoy's Popular Party (PP), Luis Bárcenas, was revealing details of the party's long-term illicit funding schemes. According to documents published in El País and El Mundo, two high-circulation daily newspapers, the party accepted illicit cash gifts from construction companies that worked for the government over almost two decades though the system was junked three years ago. Contributions routinely exceeded legal limits. Money was also regularly handed out in cash by the party to its leaders, Mr Bárcenas told El Mundo last week, including deliveries in a cigar box to Mr Rajoy. Today Mr Bárcenas reportedly told the judge that Mr Rajoy received cash payments as recently as 2010.

Until very recently both Mr Bárcenas and the Popular Party denied there had been any wrongdoing. Now only the Popular Party does so. Having doggedly protected Mr Bárcenas during the first five years of an interminable investigation (and spending hundreds of thousands of euros on his defence lawyers), it now calls him a “liar” and “crook”.

The change is dramatic. On Sunday El Mundo published the contents of Janaury text message conversations between the prime minister and Mr Bárcenas, after details of the estimated €40m ($52m) he had hidden in Swiss bank accounts had been made public and allegations about the payments had been published in newspapers. “Be strong. I'll call you tomorrow,” promised Mr Rajoy.

But Mr Bárcenas has since been remanded in jail, as the judge tries to work out how a mere party treasurer could have amassed €40m. Mr Bárcenas says the money comes from private business deals, some involving paintings.

But who now believes him or Mr Rajoy? In February the latter stated: “I have never, repeat never, received money in black.” If he declared the money received to the taxman that would be technically correct even if the source itself was black. But, as president of the party since 2004, why did he not immediately stop the alleged illicit funding? And what did those who handed over money illicitly get in return? Jointly, their companies are reported to have received some €15 billion in contracts from PP administrations.

Spaniards demand answers. Yet this case has been rumbling on since 2009. The only person to have been tried and found guilty so far is the first investigating magistrate, Baltasar Garzón, who was struck out for overeaching his powers. As ordinary Spaniards cope with falling salaries and government cuts, they deserve a clearer idea of what happened to the money donated by companies who are, in part, responsible for the current economic mess (largely created by a building bubble).

The shame is that corruption overshadows what may be the start of a timid recovery of Spain's economy. The country looks set to emerge from double-dip recession with 27% unemployment. Mr Rajoy wants to sell confidence. Instead he is harvesting cynicism and dismay. Opposition parties demand his resignation.

Corruption is Mr Rajoy's millstone. Will it sink him? The combination of an absolute parliamentary majority, an inexplicable tolerance for corruption among Spanish voters, similar scandals hitting the opposition socialists and a sluggish judicial system mean it probably will not. Today he pledged to stay on to the end, meaning until 2015. “Life is about resisting,” he said in another text message published by El Mundo. But the current scandal damages Spain's reputation, encouraging outsiders, in particular investors, to bundle it together with southern European countries like Italy and Greece as nations of graft.