Spain holds subdued ceremony to proclaim Felipe VI new king

Monarch's biggest challenge to spur dialogue between Madrid, Catalonia

Spain's new King Felipe VI was proclaimed monarch at a formal ceremony in the country's parliament on Thursday, a deliberately low-key occasion for austere times and tarnished royal reputations.

Felipe swore an oath of allegiance to democratic principles in front of lawmakers and senators, who shouted "Viva el Rey!" (Long live the king).

Although the 18th-century Spanish crown and 17th-century scepter were displayed next to the new monarch, authorities shunned an opulent coronation ceremony. The option for a relatively low-key proclamation was chosen out of sensitivity to the financial hardship endured by many Spaniards after a double-dip recession.

Even so, the cheering crowds and the pageantry provided a welcome distraction as Spaniards were reeling from their national team's shock defeat by Chile in the World Cup in Brazil, which ended their hope of winning a second consecutive title.

Earlier, in his first official act since ascending to the throne after midnight, Felipe received the red sash of captain general of the armed forces from his father Juan Carlos, who signed his abdication decree in favor of Felipe on Wednesday.

"We have a great country. We should all be proud of being Spaniards," Felipe said at his swearing-in ceremony.

Felipe acknowledged a need to restore the monarchy's image after recent royal scandals.

The monarchy was rocked when Juan Carlos went on a luxurious elephant-hunting safari in Botswana as Spaniards endured financial hardship, and his youngest daughter, Princess Cristina, was obliged to testify in a fraud and money-laundering case engulfing her husband, Olympic handball medalist turned businessman Inaki Urdangarin.

Felipe also sought to inspire a country where a quarter of the population is unemployed and many have emigrated in search of work.

He ended his speech by saying "thank you" in four Spanish regional languages - Castilian Spanish, Basque, Catalan and Galician. Some people in those regions want to secede or achieve greater independence from Spain.

One of the biggest challenges for Felipe will be whether he can use his symbolic role to spur dialogue between the leaders of Spain and the wealthy northeastern region of Catalonia, where there is a growing independence movement.

"There is room for all of us in a united and diverse Spain," Felipe said in his speech.

After a brief military parade, King Felipe VI and his wife Queen Letizia drove through Madrid in an open-top vintage Rolls-Royce with the king standing, before appearing in front of crowds on a balcony at the Royal Palace. The royal couple's daughters, Princesses Leonor, 8, and Sofia, 7, accompanied them throughout.

Security was very tight in central Madrid, with helicopters buzzing overhead. Police had carried out house-to-house searches along the route Felipe was being driven, with 7,000 police and 120 snipers out on the streets.

"The new king is going to contribute his own personality and ideas and a lot of people hope he will bring change to Spain. I personally hope for greater unity," said a 20-year-old called Alba, who was waiting with her mother and sister to catch a glimpse of the king.

AP-Reuters