There is now "sufficient evidence for a realistic prospect of conviction" of PC Alex MacFarlane, a Crown Prosecution Service review concluded.
Lawyers studied footage appearing to show the officer say to a 21-year-old black man: "The problem with you is you will always be a n*****, yeah?".
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The property developer painted the mews house in March last year after she was denied permission for a basement below the property.
Profits at the estate agent plummeted 42% in the first half of the year.
Ionut Gheorghe, 27, was detained in Los Molinos near Madrid on Friday by Spanish police under a European Arrest Warrant.