The Spanish government has decided not to pursue punitive new abortion laws which would have the procedure used only in cases of rape or where the mother’s health was at serious risk.
Currently, the law allows abortion up to 14 weeks, or 22 in cases of foetal deformities.
But President Rajoy’s Popular Party planned to return to the older standards of 1985 when abortion was first legalised. The plans drew widespread opposition, especially when it was understood that abortion could no longer be a choice in cases of serious abnormalities.
The Popular Party itself suffered deep divisions over the proposed reform. The justice minister, who had prepared the bill, resigned when the reform was scaled down.
The government is facing major elections next year.
It says it will now try to prevent 16 and 17-year-olds having an abortion without first obtaining consent from their parents.
"As president of the government, I have taken the most sensible decision," the prime minister said.
"We will continue working towards cohesion but we cannot have a law which will just change when the next government comes in."
Mr Rajoy (pictured) said he understood that abortion was an issue that touched the "profound and personal convictions of all citizens".