Spain's King Juan Carlos checks his watch while waiting for the arrival of Panamanian President Ricardo Martinelli at the Zarzuela Palace in Madrid on May 28.(Photo: Paul White, AP)

Spain's King Juan Carlos unexpectedly decided to step down in favor of his son Crown Prince Felipe, Spanish Prime Minister Mariano Rajoy announced Monday.

The king, 76, who came to power immediately after the death of Spain's notorious dictator Francisco Franco, had been on the throne for nearly 40 years.

Crown Prince Felipe is 46.

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