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Spain's Prime Minister, Mariano Rajoy, apologises for his handling of a corruption scandal which he says has harmed the country's image abroad. He says he made a mistake trusting the former treasurer of his People's Party, Luis Barcenas, who is accused of making illegal bonus payments to senior party figures from a fund of donations provided by businesses. But he's rejected allegations of his own corruption, along with calls for him to step down. MPs in Uruguay pass a bill to legalise marijuana. If approved, Uruguay will become the first country to regulate the production, distribution and sale of the drug. We get a snapshot of how Europe's holiday season is changing with postcards from some of our intrepid correspondents. Dr Irwin Stelzer unpicks US President Barack Obama's "Grand Bargain" to reduce the country's budget deficit, and we find out about plans to build a "Port City" in Sri Lanka.