Spain's opposition Socialist Party is claiming victory in today's general election.
With 85% of the votes counted, the Socialists have 43% of the vote against the ruling Popular Party who are on 37.5%.
The Interior Minister has already conceded defeat.
The Socialists say they are in a position now to form a government after ending two terms of conservative party rule.
The Popular Party is believed to have suffered because of their support for the war in Iraq.
Videotape may point to al-Qaeda
The Spanish government has said it is still examining a videotape claiming the Madrid attacks were carried out by al-Qaeda.
In the tape a man speaking Arabic with a Moroccan accent said the attacks were revenge for Spain's support for the American war on terror.
Speaking in a BBC interview this morning, the Spanish Foreign Minister, Ana Palacio, said the government was investigating the possibility that the attacks may have been carried out by al-Qaeda and the Basque group, ETA, working together.
Many Spaniards demonstrated outside the headquarters of the ruling Popular Party last night, saying they had been lied to.
Five men - thought to be three Moroccans and two Indians - who were arrrested yesterday in connection with the attacks are still being questioned.
Thursday's blasts killed 200 and injured up to 1,500.
EU countries must work together
The president of the European Parliament, Pat Cox has said the bombings have made more urgent the need for EU countries to work together to fight terrorism.
Speaking on RTÉ Radio, Mr Cox urged EU member states to agree joint security policies, including a common European arrest warrant.
