Spanish Govt Suffers Election Humiliation

**Robert Nisbet, Europe correspondent in Madrid
Spain's ruling Socialist Party has suffered a crushing defeat at the polls, as the country became the latest Eurozone member to oust its government.
The centre-right People's Party (PP), led by Mariano Rajoy, surged to an absolute majority of 186 seats out of 350 in the Spanish congress.
The PSOE party, which has governed Spain since 2004, suffered its worst electoral result for nearly thirty years after presiding over an economic boom which turned into a devastating bust.
Mr Rajoy told jubilant supporters gathered outside the party's Madrid headquarters that "there will be no miracles...but I believe hard work will get results and that has been my life's motto."
He insisted that he would fight for Spain's voice to be heard once again in Europe, and said: "We are not going to be a problem, we will be part of the solution."
The defeated socialist leader Alfredo Rubalcaba told the party faithful that the new government will have his support, adding: "We will work with all our strength to reactivate the economy and employment."
But he warned against austerity measures eroding the welfare state:
"We will defend with all our strength, and ensure that fighting the crisis will not mean losing our rights and basic safeguards we conquered over years of effort and that bring together our society and protect all Spaniards."
Congress will reconvene in mid-December, and only then will Mr Rajoy be able to take the reins of power.
The markets, even though Mr Rajoy's victory was predicted many weeks ago, have shown Spain little mercy.
That may be because the PP leader did not specify what he intends to cut, although he has given indications he intends to change labour laws as part of a wider austerity package.
Spain is in a parlous economic state, with high unemployment, stagnant growth, unsustainable labour costs and large levels of private debt.
The outgoing prime minister, Jose Luis Rodriguez Zapatero joins a growing list of leaders who have been ejected during the economic crisis in the Eurozone.