European Debt Crisis

Spain government poised to fall, Socialists set to take helm

Spain's conservative government appeared doomed Thursday to lose a no-confidence vote in parliament, with the center-left Socialist party poised to take power.

A Basque nationalist party's announcement that it would vote in favor of the motion spelled the almost certain end of Prime Minister Mariano Rajoy's mandate and foretold the stunning collapse of his minority government in a parliamentary vote Friday, when it will be short of support to survive.

Officials of Rajoy's Popular Party dismissed speculation that he might resign ahead of the vote.

"The PP has faced up to all the problems that have come its way," party secretary-general and Defense Minister...