SPAIN'S embattled royal family has agreed to open its affairs to more public scrutiny under a new transparency law intended to restore confidence in a political establishment undermined by corruption and a deep economic crisis.

Two days after Princess Cristina, daughter of King Juan Carlos, was charged in an embezzlement case, a palace source said the royal household had, after two months of negotiation with ministers, accepted it should be subject to the new freedom of information legislation, along with other organs of the state.

The move reflects the royal family's concern about retaining its influence in its largely figurehead role as scandals erode its popularity among Spaniards stricken with economic malaise.

The 75-year-old king, born in exile but recalled to succeed the dictator Francisco Franco as head of state in the 1970s, once enjoyed huge popularity as a constitutional monarch, not least after he helped quash a military coup in 1981.

However, talk of his extravagance – notably when he took off on an elephant hunt in Africa last year as the Government pleaded for indulgence from international creditors – as well as the case against his daughter and son-in-law have strengthened calls for his abdication in favour of his son. For the time being, few Spaniards want a return to a republican constitution.

Prime Minister Mariano Rajoy, whose centre-right People's Party is also em-broiled in a number of corruption scandals, has sent to Parliament a bill for a new transparency law that would give the public a right of access to official documents. It is currently being debated.

New rules could give the public more right to monitor how much the Government grants to the royal family for its official functions. The constitution establishes an annual allowance for the royal household, which employs some 500 people. Last year the allowance was €8.26 million (£7m), down 7% since 2010.

Out of the larger stipend, the king in 2011 reported pre-tax personal earnings of some €300,000 while the crown prince had around €150,000. Queen Sofia and her two daughters had expense accounts of some €375,000 in 2011.