A Spanish princess is heading to court for a historic judicial hearing to help determine whether she and her husband illegally used funds from a company to pay for expenses, including expensive parties at their modernist Barcelona mansion.

Princess Cristina faces questioning by an investigating judge who has named her as a fraud and money laundering suspect.

The legal troubles of King Juan Carlos’ youngest daughter have seriously damaged the image of Spain’s monarchy amid 26 per cent unemployment plus outrage over political corruption and unpopular tax hikes and cutbacks to cherished government programs.

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