Spain: King abdicates for his more popular son

MADRID - King Juan Carlos, who led Spain's transition from dictatorship to democracy but faced damaging scandals amid the nation's financial meltdown, announced Monday he will abdicate in favor of his more popular son so that fresh royal blood can rally the nation.

While the monarchy is largely symbolic, Juan Carlos' surprise decision may hold implications for the burning issue of Catalonia, which is to hold a secession referendum this fall.

A constitutional revision is required to ensure Crown Prince Felipe's first-born daughter will succeed him, and there was speculation other changes might be made to dull secessionist fervor in the wealthy northeastern region.

Juan Carlos said 46-year-old Felipe is ready to be king and will "open a new era of hope." The son already has greater command over the hearts of his people: Felipe's 70 percent approval in a recent El Mundo newspaper poll dwarfs Juan Carlos' 41 percent.

Juan Carlos didn't mention the scandals or Catalonia, or specify what issues his son must prioritize as the next head of state. He stressed only that Felipe will need to "undertake the transformations and reforms demanded by today's circumstances and to address the challenges of tomorrow with renewed intensity and dedication."

In his nationwide address, the king said he started making plans to give up the throne after he turned 76 in January.

Since then, Spain has embarked on a sluggish but steady economic recovery.

Its biggest problems are a 25 percent unemployment rate and Catalonia's drive to hold a secession vote in November - labeled illegal by the central government in Madrid.

Spain is expected to change its constitution to ensure Felipe's daughter, Leonor, can succeed him, should Felipe's wife get pregnant again and give birth to a boy, who would become monarch under the current constitution.

Changing the rule on succession could open the door for additional changes, including demands by the opposition Socialist Party to grant Catalonia more autonomy or special financial benefits to blunt separatist sentiment there.

"I think both parties could agree on a change to accommodate the needs of Catalonia," said Antonio Barroso, a London-based analyst with Teneo Intelligence, a political and business risk consulting firm.

On the throne for 39 years, Juan Carlos was a hero to many for shepherding Spain's democratic and economic transformation.

His popularity took a big blow following several royal scandals, including a 2012 elephant hunting trip at the height of Spain's financial crisis when he broke his right hip and had to be flown from Botswana home aboard a private jet for medical treatment.