Monday's announcement from Spain's King Juan Carlos that he was to step down, making way for his son Felipe, grabbed headlines around the world. But the country may gain more attention this week when Prime Minister Mariano Rajoy unveils a 6.3 billion euro ($8.6 billion) stimulus package after years of growth-sapping austerity.
The last years of Juan Carlos' reign saw Spain teeter on the brink of financial collapse, as the government struggled to support banks hit hard by a burst real estate bubble. The country embarked on a series of painful cuts and reforms to balance its books, sending the country into recession and unemployment soaring. The austerity measures drew criticism from economists—and a large number of protesters—that they were too much, too soon.
During this time, the king cut a controversial figure, going on elephant hunts while the country neared economic collapse, and his daughter and her husband were embroiled in a corruption probe.