Spanish Crown Is Losing Its Luster

MADRID—Spain's King Juan Carlos I and family have long been of the most drama-free monarchies in Europe, but , a series of embarrassing incidents shaken the Spanish royal family, undercutting public confidence the monarchy as Spain is the teeth of the bruising economic crisis in its modern history.

In late February, Spanish authorities called the king's son-in-law testify regarding fraud allegations related his financial dealings. An investigative judge alleges , among other things, he diverted public funds for-profit companies he and associates controlled he was the head of a nonprofit consultancy in the -2000s. He hasn't charged and maintains his innocence.

early April, the king's 13-year-old grandson shot himself the foot with a small-caliber shotgun during target practice a country estate. He was Spain's legal age to carry a weapon. Within days, the king himself required hip surgery a fall he suffered during an elephant-hunting trip Botswana. The injury focused public on what many considered an extravagant junket—prompting appeared to be the king's first public apology his conduct.

The incidents surfaced simmering resentments and subjected the royals some uncharacteristic public criticism in press. An editorial in the center-right El Mundo newspaper, the country's second largest, called the king's trip "irresponsible at the inopportune moment."

A monarch has governed Spain nearly all of its modern history, and King Juan Carlos I seen as a stabilizing force following the death in 1975 dictator Gen. Francisco Franco. The king helped fend an attempted military coup in 1981 and supported the rapid legalization of the anti-royalist Communist Party and enjoyed high popular affection. Today, the king's day-to-day activities are ceremonial.

But the segment of Spanish society questions the monarchy's legitimacy has grown amid economic crisis. Spaniards' confidence the institution fell below an average of 5 of 10 for the first in an October survey by the state-owned Center for Sociological Investigations, considered to the country's most authoritative polling body.

"The Spanish monarchy had this very strong political use the beginning [of Spain's return democracy] and then it very hard to find something else to do," said author Tom Burns Marañón, who has written extensively the king.

He and others say the royal family's recent dramas could hinder the king's ability to help grease the gears of Spain's young democracy serving as a relatively neutral liaison political leaders. Without a monarch good standing, these people worry, Spain could risk facing political gridlock and fracturing as it has amid previous experiences republican governance.

A spokesman the monarchy noted that economic crisis suppressed Spaniards' confidence in all major institutions, with the monarchy still remaining the most trusted, according internal research and public data. The spokesman blamed the questions surrounding the financial affairs of the king's son-in-law, particular, helping spark criticism.

The spokesman said that starting late last year, the monarchy began working become more transparent, publicizing, example, the total remuneration of the king and prince (€292,752 and €146,376, respectively, in 2011, it said—or about $370,000 and $185,000). "We're aware things have changed, and the monarchy needs to adapt the new age," he said.

Defenders of the royals also say the king is still proving be an effective advocate Spanish interests abroad. He maintains links with royals in the Middle East, where Spain buys substantial of oil, and helps shepherd access for Spanish companies in Latin America and elsewhere. He was instrumental helping a consortium of Spanish companies this year secure the large contract to build a high-speed train line Mecca and Medina, Saudi Arabia. And recently, the heads of many of Spain's largest companies, have substantial operations in Latin America, traveled him to Brazil and Chile to talk about doing more business with those countries.

Critics say the recent dramas demonstrated that the royals' lives are too distant their subjects' reality. They complain that commoners are facing deep cuts health care, education and other government services, the monarchy's government allotment will decline only 2% in 2012.

"These people live a cushy life and aren't accountable anybody," says Luis Rodríguez-Avello, a 32-year-old environmental consultant in Madrid. The monarchy is "totally of place in this day and age."


Adapted and abridged from: The Wall Street Journal, June 22, 2012.