He's a direct descendant of ancient rulers - Carlos I, the first King of Spain (1500s), King Louis XIV of France, the Sun King (1600s-1700s) and Queen Victoria of the UK (1800s-1900s), and he's related to all current monarchs in Europe.

Yet King Juan Carlos I of Spain had not been expected to become king. When he was born in 1938 his family was already in exile, his grandfather Alfonso XIII having abdicated the throne in 1931.

A bloody civil war followed the abdication and Francisco Franco rose to power. Supported by fascist Germany and Italy, Franco had assumed all powers - commander of the armed forces, prime minister and head of state for life. After World War II ended in 1945, Franco intended his authoritarian reign to continue, but even his supporters were concerned about who would follow him. Although monarchist elements supported the late Alfonso's eldest son, Juan de Borbon, Franco refused; Juan seemed too liberal for Franco's tastes.

Ultimately, Franco's choice landed on the next generation. In 1969, he named Juan's son Juan Carlos as his personal successor as head of state. Franco had hoped the young prince would maintain the ultra-conservative policies of the regime, but as soon as Juan Carlos succeeded to the throne, two days after Franco's death in 1975, the new king quickly instituted democratic reforms. Within three years, a new constitution had been adopted, in which Juan Carlos relinquished absolute power and became a reigning but non-ruling monarch.

Conservative circles, especially in the military, had also expected him to maintain the authoritarian state and were greatly displeased by his liberal policies. Their animosity culminated in an attempted military coup in 1981, in which members of the Cortes, the Spanish parliament, were seized.

Although there is much conjecture surrounding this attempted coup, in the widely accepted version it was neutralised by His Majesty himself, when he personally called many senior military figures to tell them he was opposed to the coup and that they must defend the democratic government. Then he made a television broadcast calling for support for the legitimate government.

By his cool-headedness during this difficult situation, he won over people who had doubted that his reign would last.

For instance, Santiago Carrillo, a Communist leader, had, before the attempted coup, nicknamed him Juan Carlos the Brief and had predicted the monarchy would disappear along with other traces of the Franco era. When the coup collapsed, Carrillo went on television and stated emotionally: "God save the king!"

This widespread support signalled new economic and political growth in the country.

By the 1960s, the country saw an upsurge in economic progress. Today, its mixed economy (based on mass tourism, the construction industry and manufacturing) supports a per capita GDP that has grown 25 per cent over the past 10 years to US$25,200 (2005 estimate). The unemployment rate continues to fall. It is now 8.7 per cent, and while still high, it is nowhere near the levels of 20 per cent-plus of the early 1990s.

Spain still faces challenges within and outside the country. One major challenge lies in the terrorist activities of the Basque Fatherland and Liberty (ETA) group, which is attempting to achieve independence through violent means, although ETA declared a "permanent cease-fire" that came into force on March 24, 2006.

Over the next few years, Spain will have to adjust to monetary and other economic policies of an integrated Europe. Unemployment must also be reduced further. In addition, economists are concerned the country will not be able to sustain its economic growth over the long term. Although King Juan Carlos is no longer active in Spanish politics, he is remembered for having overseen the country's transition to a democratic constitutional monarchy. He is also regarded as a fundamental symbol of the country's unity, a symbol that is expected to be carried on by his son, the heir apparent, Felipe.

Laurie Rosenthal

The Nation