As it was widely expected Spain's centre-right Popular Party (PP) has won a resounding victory in a parliamentary election dominated by the country's deep debt crisis.

The PP, led by Mariano Rajoy, is assured of a clear majority in the lower chamber.

The Socialist Party, which has governed Spain since 2004, has admitted defeat.

Mr Rajoy, who is expected to tackle the country's debts amid slow growth and high unemployment, said he was aware of the "magnitude of the task ahead".

The PP won about 44% of the votes and the Socialists 29% in Sunday's election, according to near-complete official results.

The PP is expected to take about 186 of the 350 seats in the lower house.

As the results were announced, jubilant, flag-waving supporters danced outside party headquarters in central Madrid.

The only positive news for the left comes from the Basque Country, where the Amaiur coalition won 7 seats with over 380 thousand votes. So while in Spain time are critical, in the Basque Country indeed they are historical.

While in Spain politics is controlled by alternate parties in government in the Basque Country what is being born is an alternative.