In later years he became more of a figurehead.
He has been credited as a stabilising force for independence-minded areas such as Catalonia and the Basque region.
Prince Felipe and his wife - former television presenter Princess Letizia - have recently taken on more important roles in ceremonial events.
Felipe appears to have been untarnished by the scandal.
But the BBC's Ignacio del los Reyes, in Spain, says there is still concern over whether the couple will be able to save a damaged institution.
June 2014: King Juan Carlos of Spain steps down, saying he is passing the role to a younger, energised generation.
July 2013: Belgian King Albert II abdicates in favour of his son, Philippe, for health reasons.
April 2013: Queen Beatrix of the Netherlands hands the throne to her son Prince Willem-Alexander, saying he is ready to reign and it is time for the throne to be held by "a new generation"
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