"His Majesty King Juan Carlos has just informed me of his desire to renounce the throne and begin the process of succession," Rajoy said in a brief statement, calling the rulers a "tireless defender of our interests".
"I'm convinced this is the best moment for change," Rajoy added.
Spain's Juan Carlos I is to abdicate and be replaced by his son Crown Prince Felipe, sparking calls across the country for a referendum on the future of the monarchy.Most political parties on the left are in favour of opening a process of change now and they want to be able to ask citizens whether to continue with the monarchy or opt for a change," she added.
Felipe, 46, is set to take over the Spanish throne from his 76-year-old father, following a new constitutional amendment to allow the surprise abdication, according to Spain's Prime Minister Mariano Rajoy.
Juan Carlos, whose health is weakening, has long contemplated yielding the throne to Prince Felipe and he has now acknowledged that he had decided to abdicate in January, when he turned 76-years-old.
Juan Carlos came to power in 1975, two days after the death of Spanish dictator Francisco Franco. He has ruled for more than 38 years, but has seen his once immense popularity and that of the Royal Family dwindle in recent years following a number of embarrassments.He has endured a long-running corruption probe into his younger daughter, the Infanta Christina, and son-in-law Inaki Urdangarin, suspected of fraudulently obtaining millions in public funds.
Felipe is married to former journalist Leticia Ortiz and the couple have two daughters, Leonor and Sofía.
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