Socialist politician Pedro Sanchez has taken over as Spain’s prime minister, after the outgoing leader Mariano Rajoy lost a parliamentary confidence vote triggered by a long-running corruption trial.

Socialist party head Sanchez becomes Spain’s seventh Prime Minister since its return to democracy in the late 1970s following the dictatorship of Francisco Franco.

But Rajoy’s departure after six years in office casts one of the European Union’s top four economies into an uncertain political landscape.

Sanchez won Friday’s no-confidence motion with 180 votes in favour, 169 against and 1 abstention. He suggested on Thursday he would try to govern until the scheduled end of the parliamentary term in mid-2020.

But it is unclear how long his administration, with only 84 Socialist deputies in the 350-member assembly, can last.

The leftist party Podemos, which will offer parliamentary support to Sanchez’s government, is also unlikely to gain big influence over the new Prime Minister, who is keen to differentiate his Socialist party from its anti-austerity ally and win back centrist voters.

Rajoy had conceded defeat prior to the no-confidence vote, earlier telling deputies: “Mr Sanchez will be the head of the government and let me be the first to congratulate him.”

Rajoy’s position had become increasingly untenable, undermined by his status as head of a corruption-tinged minority government as well as a divisive independence drive in the wealthy region of Catalonia.

The Basque Nationalist Party, whose five seats were key to Sanchez securing enough parliamentary backing, withdrew support from Rajoy after dozens of people linked to his center-right People’s Party (PP) were sentenced to decades in jail in a corruption trial.

Two Catalan pro-independence parties as well as Podemos also backed Sanchez. Market-friendly Ciudadanos, leading in the national opinion polls, was the only major party that supported Rajoy.

Sanchez, who is expected to be sworn in by Monday and appoint his cabinet next week, has promised to start talks with the Catalans but said he will not give them an independence referendum.</s>The leader of Spanish Socialist party Pedro Sanchez became prime minister on Friday after centre-right politician Mariano Rajoy was voted out of office.

The move follows a closely fought no-confidence motion in the parliament triggered by a long-running corruption trial linked to Mr Rajoy’s centre-right People’s Party (PP).

The motion, called by Mr Sanchez, was backed by 180 MPs with 169 voting against and one abstaining. Mr Sanchez is expected to take office by Monday and his cabinet appointed next week.

Mr Rajoy had been prime minister for six years and his departue marks the first removal of a serving leader by the parliament in Madrid in four decades of democracy following the dictatorship of Francisco Franco.

The development casts one of the European Union’s four largest economies into an uncertain political landscape, just as another - Italy - pulled back from early elections. However, with most Spanish parties and Mr Sanchez himself being pro-European, investors see less broader political risk there than in Italy.

Mr Sanchez had the backing of the anti-establishment group Podemos and some Catalan separatists in what Mr Rajoy has derided as a “Frankenstein coalition”. The incumbent has promised to start talks with the Catalans but said he will not give them an independence referendum.

The Basque Nationalist Party, whose five seats were key to Sanchez securing enough parliamentary backing, withdrew support from Mr Rajoy after dozens of people linked to his centre-right People’s Party were sentenced to decades in jail in a corruption trial.

Market-friendly Ciudadanos, leading in the national opinion polls, was the only major party that supported Mr Rajoy.

The Socialist suggested on Thursday that he would try to govern until the scheduled end of the parliamentary term in mid-2020. However, it is unclear how long his administration, with only 84 Socialist deputies in the 350-member legislative assembly, can last.

Mr Rajoy conceded defeat as he delivered a short speech to parliament on Friday before the vote.

“Mr Sanchez will be the head of the government and let me be the first to congratulate him,” he said. “I will accept as a democrat the result of the vote as it is well-known, I can’t agree with what has been done.”

Mr Rajoy said there was no greater honor than being prime minister of Spain and congratulated Mr Sanchez, who repaid the compliment, wishing Mr Rajoy all the best and saying he would have his respect as a former premier.

Mr Sanchez says it is time to stabilise Spain and address what he described as social emergencies. His new government would be sensitive to gender and environmental issues and seek to build democracy with “exemplary institutions,” he said.

He has already committed to respecting a budget passed by Mr Rajoy, and the fragmented parliament means he will find it hard to row back on structural reforms passed by his predecessor, including new labour laws and cuts in healthcare and education.

Leftist Podemos is also unlikely to gain big influence over the new prime minister, who is keen to differentiate his Socialist party from its anti-austerity ally and win back centrist voters. - Reuters/Bloomberg</s>MADRID (Reuters) - Spanish Prime Minister Mariano Rajoy’s hours in office appeared numbered on Thursday after reports that a Basque political party would back a no-confidence vote over a corruption case, paving the way for Socialist leader Pedro Sanchez to take power.

Cadena Ser radio and La Sexta television reported on Thursday that the Basque Nationalist Party would vote against Rajoy, giving his opponents enough votes to unseat him.

Sanchez appeared to have secured 180 votes to become prime minister, more than the absolute majority of 176 votes he would need to take power immediately if the no-confidence vote is held on Friday as scheduled. Rajoy could potentially slow the transition if he were to resign before the vote.

Rajoy’s departure would trigger a second political crisis in southern Europe, further unnerving financial markets already wrongfooted by failed attempts to form a government in Italy three months after a national election.

With most Spanish parties in favor of respecting EU fiscal rules however, it is highly unlikely that a new government would follow Italy in questioning the euro single currency.

News of Rajoy's likely downfall sent Spain's blue-chip index Ibex .IBEX down 0.72 percent at 1405 GMT, erasing a 0.9 percent gain earlier in the day, but did not trigger any immediate sell-off.

Resigning before the vote takes place on Friday would spare Rajoy the humiliation of becoming the first Spanish Prime Minister to lose a no-confidence vote. He did not attend the afternoon session of the debate on Thursday.

If he resigns, the government of his People’s Party would go into caretaker mode until a new prime minister is sworn in, which could take several weeks or months. If the vote goes ahead and Rajoy loses, Sanchez would immediately replace him.

“Are you ready to resign? Resign today and leave by your own will,” Sanchez told Rajoy. “You are part of the past, of a chapter the country is about to close,” he also said.

The Basque PNV party backed Rajoy’s budget as recently as last week but it decided to remove its support after dozens of people linked to the ruling People’s Party (PP) were sentenced to decades in prison in a long-running corruption trial.

Sanchez said he would stick to the budget approved by Rajoy if he won and would also seek to start a new dialogue with the restive region of Catalonia.

Defending his record on Thursday, Rajoy told deputies his centre-right PP has a wide majority of members who are “decent and honest”.

“The Socialists have left us with a ruined country and we brought back growth and jobs,” he said, adding that Sanchez was trying to put together a “Frankenstein” government that would damage the economy.

Two Catalan pro-independence parties as well as leftist Podemos, a relative newcomer, another small Basque group and a party from the Canary Islands have said they will back Sanchez.

Jose Luis Abalos, the member of parliament in charge of formally presenting the motion on behalf of the Socialists, told PP deputies that the court ruling had triggered a wave of indignation across the country.

“While families were suffering the crisis, you were becoming millionaires,” he told PP members in parliament.

Rajoy, whose minority government has struggled after two inconclusive elections in 2015 and 2016 ushered in the most fragmented parliament since democracy returned to Spain in the 1970s, is also coming under fire for a perceived inability to solve a secession crisis in Catalonia.</s>Socialist Pedro Sanchez took over as Spain's prime minister on Friday, after outgoing leader Mariano Rajoy lost a parliamentary confidence vote triggered by a long-running corruption trial involving members of his centre-right party.

[MADRID] Socialist Pedro Sanchez took over as Spain's prime minister on Friday, after outgoing leader Mariano Rajoy lost a parliamentary confidence vote triggered by a long-running corruption trial involving members of his centre-right party.

Socialist party head Sanchez becomes Spain's seventh Prime Minister since its return to democracy in the late 1970s following the dictatorship of Francisco Franco.

But Mr Rajoy's departure after six years in office casts one of the European Union's top four economies into an uncertain political landscape, just as another - Italy - pulled back from early elections.

Mr Sanchez won Friday's no-confidence motion with 180 votes in favour, 169 against and 1 abstention.

He suggested on Thursday he would try to govern until the scheduled end of the parliamentary term in mid-2020. But it is unclear how long his administration, with only 84 Socialist deputies in the 350-member legislative assembly, can last.

With most Spanish parties and Mr Sanchez himself being pro-European, investors however see less broader political risk there than in Italy.

Anti-establishment parties in Rome revived coalition plans on Thursday, ending three months of turmoil by announcing a government that promises to increase spending, challenge European Union fiscal rules and crack down on immigration.

"We've had a rude awakening of European political risks this week... but the situation in Spain is very different from Italy," said Michael Metcalfe, head of global macro strategy, State Street Global Markets.

"The parties leading in the polls in Spain are centrists so we're not getting the proposals for fiscal extremes as we have in Italy."

Many observers said Mr Sanchez was in any case unlikely to call any vote until after European, local and regional elections take place in May next year.

He has already committed to respecting a budget passed by Mr Rajoy, and the fragmented parliament means Mr Sanchez will find it hard to row back on structural reforms passed by his predecessor, including new labour laws and cuts in healthcare and education.

Leftist Podemos, which will offer parliamentary support to Mr Sanchez's government, is also unlikely to gain big influence over the new Prime Minister, who is keen to differentiate his Socialist party from its anti-austerity ally and win back centrist voters.

Mr Rajoy had conceded defeat prior to the no-confidence vote, earlier telling deputies: "Mr Sanchez will be the head of the government and let me be the first to congratulate him."

Mr Rajoy's position had become increasingly untenable, undermined by his status as head of a corruption-tinged minority government as well as a divisive independence drive in the wealthy region of Catalonia.

The Basque Nationalist Party, whose five seats were key to Mr Sanchez securing enough parliamentary backing, withdrew support from Mr Rajoy after dozens of people linked to his centre-right People's Party (PP) were sentenced to decades in jail in a corruption trial.

Two Catalan pro-independence parties as well as Podemos also backed Mr Sanchez. Market-friendly Ciudadanos, leading in the national opinion polls, was the only major party that supported Mr Rajoy.

Mr Sanchez, who is expected to be sworn in by Monday and appoint his cabinet next week, has promised to start talks with the Catalans but said he will not give them an independence referendum.</s>MADRID, May 31 (Reuters) - The future of Spain's Prime Minister Mariano Rajoy hung in the balance on Thursday, with the opposition Socialists a whisker away from forcing him out of office as deputies began debating a no-confidence motion against his government.

Socialist leader Pedro Sanchez needs an absolute majority of 176 votes to become Spain's new Prime Minister, and information from various parties suggested he had secured 175 as the parliamentary session got under way.

Rajoy's departure would trigger a second political crisis in southern Europe, further unnerving financial markets already wrongfooted by failed attempts to form a government in Italy three months after a national election.

The no-confidence vote is scheduled for Friday afternoon, and Sanchez was on Thursday morning trying to win over the Basque Nationalist Party, which has five seats and was due to make a final decision during the afternoon, when its leadership holds an extraordinary meeting.

The Basque party backed Rajoy's budget as recently as last week in parliament but is considering removing its support following a court ruling that sentenced dozens of people linked to the ruling People's Party (PP) to decades in prison in a long-running corruption trial.

Rajoy, whose minority government has struggled after two inconclusive elections in 2015 and 2016 ushered in the most fragmented parliament since democracy returned to Spain in the 1970s, is also coming under fire for a perceived inability to solve a secession crisis in the region of Catalonia.

Two Catalan pro-independence parties as well as leftist Podemos, a relative newcomer, another small Basque group and a party from the Canary Islands have said they would back Sanchez.

"The court ruling triggered a wave of indignation across the country. While families were suffering the crisis, you were becoming millionaires," Jose Luis Abalos, the member of parliament in charge of presenting the motion on behalf of the Socialists, told PP members in parliament at the start of the two-day debate.

Rajoy said on Wednesday he intended to serve his four-year term without calling an early election. But opposition parties are expected to continue to try to oust him even if Friday's vote fails.

Podemos and another newcomer, centre-right Ciudadanos, have said they were ready to present a new no-confidence motion with a candidate for Prime Minister whose brief would be to dissolve parliament and call a snap election.

The Spanish economy has so far appeared unaffected by political events. Gross domestic output grew by 3.0 percent on an annual basis in the first quarter, one of the strongest rises in the euro zone. (Reporting by Julien Toyer; editing by John Stonestreet)</s>MADRID — The Latest on moves to oust Spanish Prime Minister Mariano Rajoy (all times local):

Spanish media are reporting that regional Basque nationalist lawmakers will back a no-confidence vote against Prime Minister Mariano Rajoy, bringing closer the conservative’s replacement by a Socialist-led government.

The five votes of the Basque Nationalist Party, or PNV, are seen as key for Socialist leader Pedro Sanchez to win the vote in the lower house of the Spanish parliament. An absolute majority of 176 votes are required in the 350-seat chamber.

Spain’s public broadcaster TVE and leading El Pais newspaper quoted unnamed sources from the ruling Popular Party who had been informed by the Basques of their decision.

A PNV spokeswoman told The Associated Press she couldn’t confirm the reports.

Rajoy himself wasn’t in his seat in early Thursday afternoon, when the chamber resumed the no-confidence debate after a lunch break.

Spain’s opposition Socialists have tried to persuade smaller parties to support their bid to oust Prime Minister Mariano Rajoy’s conservative government as they opened a tense parliamentary debate on their no-confidence motion.

Addressing lawmakers, Socialist leader Pedro Sanchez promised Thursday to uphold a recently negotiated national budget that includes substantial benefits for Basque nationalists. Voters from their legislations would allow Sanchez to oust Rajoy.

He urged the prime minister to step down after his ruling Popular Party was fined as beneficiary of a large kickbacks-for-contracts scheme

The prime minister fought back. He told lawmakers it made no sense to seek a no-confidence vote based on the graft ruling because the National Court’s verdict “doesn’t include any criminal punishment” for his party.

The Spanish parliament’s lower house is debating whether to end Prime Minister Mariano Rajoy’s nearly eight years in power and replace him with the leader of the Socialist opposition.

Rajoy refused to resign after his conservative Popular Party was fined as beneficiary of a large kickbacks-for-contracts scheme. In a damaging ruling last week, the court questioned Rajoy’s claim that he and other top officials were unaware of the party’s illegal accounting.

Socialist leader Pedro Sanchez, who is leading the no-confidence vote against Rajoy, would instantly become the country’s prime minister if he wins 176 or more votes in the 350-seat Congress of Deputies on Friday.

His opening speech Thursday proposing an alternative government will be watched by other opposition lawmakers who are still undecided on whether to oust the government.</s>The Latest on moves to oust Spanish Prime Minister Mariano Rajoy (all times local):

Mariano Rajoy has told the Spanish parliament that he is proud of his record as prime minister in brief remarks ahead of a no-confidence vote that appears set to give the power to the opposition Socialists.

Rajoy told lawmakers on Friday: "It has been a honor to leave Spain better than I found it. Thank you to all Spaniards and good luck."

Rajoy's likely removal follows corruption convictions last week involving former members of his conservative Popular Party.

Backed by a narrow majority in the 350-seat lower house, Socialist leader Pedro Sanchez appears set to become prime minister-designate. The final vote has been called for 0900 GMT.

Socialist opposition leader Pedro Sanchez is on the brink of ending Mariano Rajoy's more than six-year reign as Spanish prime minister in what would be the first ouster of a serving leader by parliament in four decades of democracy.

Barring last-minute surprises, a no-confidence vote that would oust Rajoy and make Sanchez prime minister-designate is expected to pass by a narrow majority in parliament's 350-seat lower house.

Rajoy's likely removal follows corruption convictions last week involving former members of his conservative Popular Party.

The prime minister wasn't in the Congress of Deputies on Friday morning when the debate resumed on the motion ahead of a final vote. He didn't attend Thursday afternoon either, going instead to a central Madrid restaurant with some members of his cabinet.</s>MADRID — Mariano Rajoy is out. Pedro Sánchez is in. Welcome to a new era in Spain.

Sánchez, leader of the Socialists, won enough backing in parliament on Friday for a motion of no confidence in Rajoy, shortly after a court ruling in a graft scandal involving former officials from the prime minister’s Popular Party.

It was a fast, hostile political operation aimed at Rajoy’s fragile minority government — and it worked.

Sánchez managed to assemble an unlikely coalition — labeled “Frankenstein” by rivals — with the far-left Podemos, two Catalan pro-independence groups and a Basque nationalist party, all of who had refused to endorse the Socialist for the premiership in the past.

“Our Yes to Sánchez is a No to Rajoy,” is how Joan Tardà, speaker of the Catalan Republican Left, put it in parliament.

It was a bitter way to go for Rajoy, the first Spanish prime minister to be taken down by a motion of no confidence. It was also an extraordinary vindication for Sánchez, whose chances of getting the top job had been dismissed by polls, rivals and analysts.

Here are five takeaways from Spain’s new political age:

Rajoy survived a car crash in his youth that left him with scars on his face and walked away unscathed from a helicopter accident in 2005. He overcame two defeats in general elections and an attempted coup within his party in 2008. After taking power in 2011, he led Spain through the economic crisis and stared down the Catalan secessionists.

But the country’s most extraordinary political survivor came unstuck on Friday.

It was a particularly unglamorous end. He was sacked because of corruption in his Popular Party, although the PM himself wasn’t accused of any wrongdoing in the courts. Rajoy didn’t even attend most of the marathon parliamentary session called to oust him. On Thursday afternoon, he and his aides went to a restaurant instead. On Friday morning, he arrived late to the Congress of Deputies.

“It’s been an honor — there isn’t a greater one — to be prime minister of Spain,” he told lawmakers before the vote that put an end to his mandate. “It’s been an honor to leave a better Spain than the one I found.”

The fate of his conservatives is now at stake. Under threat from the liberal Ciudadanos and with its poll numbers falling sharply and more graft cases on the way, the future doesn’t look promising for the PP.

By Friday afternoon, Rajoy hadn’t said if he wants to stay on as leader of the opposition. A senior official from the PP, who wanted to remain anonymous, told POLITICO Rajoy would stay — but there could be an internal power struggle. The party has called an urgent meeting of its leadership next week.

Rajoy had the smallest parliamentary backing in recent Spanish history. With just 84 Socialist lawmakers in the 350-seat chamber, Sánchez’s minority government will beat that record.

Plus, the political groups that helped Sánchez get the top job have proven unreliable partners in the past.

Podemos has waged a fierce battle against Sánchez for control of the left since the anti-establishment party was founded in 2014, and the Catalan groups triggered Spain’s gravest political crisis in decades when they spearheaded an independence push.

It will be a “weak and difficult government,” Aitor Esteban, the speaker of the Basque Nationalist Party, which also backed the Socialists, warned.

The Socialist PM could, in theory, stay in power until 2020, when a general election must be called. He has, however, promised to call an early ballot at an unspecified date. The likelihood is that he will wait until his party is in better shape for an election before calling one.

Sánchez didn’t give many hints as to what his government will do, but he vowed to honor Spain’s commitments to its European partners in terms of budget stability and to lead a firmly pro-European government.

How talented a politician Sánchez is has been the subject of intense debate, but allies and rivals unite in praising his bravery.

The former basketball player was ousted from the Socialist leadership in an internal power struggle in 2016 following a 10-month-long political deadlock, during which he refused to back Rajoy for another term in office but couldn’t seize power from him.

At that point, his political career appeared over. But he fought back and retook control of the party last year.

On Friday, he became the first Spanish prime minister to be elected without having won an election. In fact, he’s led the Socialists to the two worst electoral defeats in their recent history (in 2015 and 2016).

“Politics is a long-distance run,” he told POLITICO in an interview last month.

Sánchez, the first Spanish leader who speaks decent English, will now try and make sure that his Socialists, who lag behind Ciudadanos and the PP in recent polls, make the most of their opportunity.

“I’m aware of the responsibility,” Sánchez told reporters Friday. “I will work humbly.”

4. Time for a cooling off on Catalonia?

Sánchez becoming prime minister caught Catalan pro-independence parties off-guard — and could trigger a change of strategy among the separatists, from total confrontation to finding common ground with the central government.

The Socialist leader didn’t promise much to the Catalan groups that backed him, but his tone was cordial — in stark contrast with his attitude in recent weeks when he labeled new Catalan president Quim Torra “xenophobic” and “the Spanish [Marine] Le Pen.”

All Sánchez did was pledge to uphold the country’s unionist constitution, while promising vague dialogue between Madrid and the new Catalan cabinet — something that Rajoy had already done.

Yet that was enough to win Catalan support for the motion against Rajoy. “It’s time to look to the future and channel via political means a political problem,” said Carles Campuzano of the Catalan European Democratic Party, the party of Carles Puigdemont.

With Rajoy out, the more moderate elements of the Catalan separatist movement will have an opportunity to push for a softer approach with Madrid. Direct rule over Catalonia by the central government will be ended within hours and Sánchez has defended greater powers for the region and constitutional change, although he lacks the majority in parliament to amend the constitution.

The big test could come when the trials of separatist leaders reach the courts over the coming months. They could be sentenced to decades in prison.

Any gesture of appeasement toward the separatists could have enormous political cost for Sánchez and boost the fiercely anti-independence Ciudadanos.

The Ciudadanos, led by Albert Rivera, voted against Sánchez’s motion of no confidence, calling instead for an immediate election.

That stance could be used against them, with rivals accusing Rivera of seeking to protect the scandal-hit PP. A quiet period in Catalonia would also rob them of a favorite topic.

Yet Sánchez’s parliamentary allies provide Ciudadanos with fresh targets. The “populists” and the “putschists” is how Rivera often refers to Podemos and the Catalan pro-independence groups.

“We’ll win an absolute majority in the elections in one year’s time,” was the bold forecast of a member of the leadership of Ciudadanos.

Read this next: Italy on course for populist government</s>(AP Photo/Francisco Seco). Spain's Prime Minister and Popular Party leader Mariano Rajoy touches his eye as he listens to speeches during the first day of a motion of no confidence session at the Spanish parliament in Madrid, Thursday, May 31, 2018. Th...

(AP Photo/Francisco Seco). Spain's Prime Minister and Popular Party leader Mariano Rajoy listens to speeches during the first day of a motion of no confidence session at the Spanish parliament in Madrid, Thursday, May 31, 2018. The lower house of the S...

(AP Photo/Francisco Seco). Spain's Socialist leader Pedro Sanchez closes his eyes as he listens to speeches during the first day of a motion of no confidence session at the Spanish parliament in Madrid, Thursday, May 31, 2018. A tense parliamentary deb...

(AP Photo/Francisco Seco). Spain's socialist opposition leader Pedro Sanchez sits at the start of the second day of a motion of no confidence session at the Spanish parliament in Madrid, Friday, June 1, 2018.Spain's conservative government appears doom...

MADRID (AP) - Socialist leader Pedro Sanchez will become Spain's new prime minister after a no-confidence vote Friday in parliament unseated Mariano Rajoy's conservative government. He came in vowing to address the "social emergencies" of the country's citizens after years of austerity measures.

Sanchez, until now the head of Spain's largest opposition party, could be sworn in by King Felipe VI as early as Saturday and will appoint his Cabinet over the coming days.

The 46-year-old takes the helm of the eurozone's fourth-largest economy at a time when the European Union has to resolve numerous problems, including Britain's impending departure from the bloc and political tensions over the tens of thousands of migrants who are still entering the continent from North Africa.

On the domestic front, Sanchez will head a minority government that will need to negotiate potentially difficult deals with other parties to get its legislation passed.

To prevent a power vacuum after a no-confidence motion, Spanish law makes the motion's author - in this case, Sanchez - the country's new leader as soon as the king swears him in.

The Madrid stock exchange was up 2 percent after Sanchez won the vote and earned a standing ovation from his party's lawmakers.

The end of Rajoy's more than six-year reign as prime minister was the first ouster of a serving leader by parliament in Spain's four decades of democracy.

It also was a rare success for a center-left party in Europe in recent times. Sanchez and his party are staunch supporters of the EU and the euro currency shared by 19 EU nations.

In a brief speech before the vote, Rajoy told lawmakers "it has been an honor to leave Spain better than I found it."

He then shook hands with Sanchez after the result was announced.

Rajoy has been in power since December 2011, successfully steering Spain out of its worst economic crisis in decades during the eurozone debt crisis and achieving some of the strongest economic growth in Europe. Last year, gross domestic product growth reached 3.1 percent.

But the reputation of Rajoy's Popular Party's was badly damaged by a court verdict last week that identified it as a beneficiary of a large kickbacks-for-contracts scheme.

Sanchez saw that as his opening and managed to muster enough support from smaller parties to send him to La Moncloa palace, the seat of government in Madrid.

Sanchez, who will be Spain's seventh prime minister since the country's return to democracy in the late 1970s, arrives in power after a spectacular turnaround in his political fortunes. He was ousted by his own party in 2016 over back-to-back losses in general elections and after he tried to block Rajoy's bid to form a government.

The former economics professor and career politician regained the Socialists' leadership last year.

The incoming prime minister says his priorities will be social issues - including more measures to help young people and the elderly. He told reporters Friday that he was "aware of the responsibility and the complex political moment of our country."

He vowed to build consensus among political parties to "transform and modernize" Spain and "address the social urgencies of many people who suffer precariousness and inequality."

He has promised to call a new election before the end of this term in 2020.

Still, Sanchez will face a tough time catering to demands from the small parties whose votes he captured in the no-confidence motion, among them Catalan separatists.

A new Catalan Cabinet is scheduled to regain the prosperous region's self-government on Saturday, ending a seven-month takeover by central authorities in Madrid over the separatists bid to secede from Spain.

In a reversal from Rajoy's aversion to Catalonia's aspirations for greater autonomy, Sanchez has promised to open a dialogue with new Catalan President Quim Torra despite having called the fervent separatist's comments "xenophobic."

In other challenges, the center-right Ciudadanos (Citizens) party - which has been leading recent opinion polls - is demanding an early election and is vowing fierce opposition to Sanchez.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>A motion of no confidence has been passed in Spanish Prime Minister Mariano Rajoy following a corruption scandal.

It passed by 180 votes to 169 with one abstention.

He is the first Spanish prime minister to lose such a vote since Spain transitioned to democracy in 1977.

Deputies were asked individually in the lower house of parliament, the Congress of Deputies, whether or not they supported the motion on Friday morning.

This was done in an individual roll-call of deputies.

Spain's Prime Minister Mariano Rajoy, bottom right, waves as members of his party applaud him during the second day of a motion of no confidence session at the Spanish parliament in Madrid | Image: Francisco Seco/AP/Press Association Images

This means Pedro Sánchez, the leader of the opposition PSOE party, is the new prime minister.

Mr Sanchez (46) is expected to take office by Monday, after King Felipe VI swears him in.

He is also expected to appoint his cabinet next week.

Mr Sanchez has already committed to respecting a budget passed by Mr Rajoy.

He has also promised to start talks with the Catalans over their bid for independence, but said he will not give them another referendum.

His party has a narrow majority in the 350-seat lower house.

Pedro Sánchez smiles at the start of the second day of a motion of no confidence session at the Spanish parliament in Madrid | Image: Francisco Seco/AP/Press Association Images

Mr Rajoy told the Spanish parliament he was proud of his record.

"It has been an honour to leave Spain better than I found it. Thank you to all Spaniards and good luck," he said.

The vote of no-confidence came after 29 former members of his conservative Popular Party were convicted of corruption last week.

The Spanish National Court found bribes were offered to former officials in exchange for public contracts.

The party also received a fine as a beneficiary of the kickbacks-for-contracts scheme.
The debate on a motion of no confidence against Spanish Prime Minister Mariano Rajoy's government takes place at the Congress of Deputies, with a vote scheduled tomorrow. With an expected 180 votes against 176 needed, leader of the Opposition, socialist Pedro Sánchez, could immediately become the next Prime Minister.