MADRID, March 9 (UPI) -- Voters in Spain headed to the polls Sunday to decide the fate of the ruling Socialist Party days after one of its leaders was gunned down in the Basque area.

The global economy has reached into Spain, causing rising inflation and unemployment. A faltering housing market and immigration issues are key issues of the campaign, the BBC said Sunday.

Mariano Rajoy from the conservative Popular Party faces off against the current Socialist prime minister, Jose Luis Rodriguez Zapatero.

The Socialist Party pointed to its liberal reform measures of gender-equality laws and same-sex marriages, while the Popular Party stressed immigration issues.

On Friday, 42-year-old Socialist councilor Isaias Carrasco was shot dead in the Basque town of Arrasate.

The election has been marred by the killing and analysts speculate whether that will have an effect on voter turnout.

There are 350 members of the lower house of parliament and 208 of the 264-member upper house up for grabs in the election.

Malaysian election setback for government

KUALA LUMPUR, Malaysia, March 9 (UPI) -- The Malaysian National Front lost its two-thirds parliamentary majority and lost control of five states in national elections Saturday.

While the government of Prime Minister Abdullah Badawi retains control of parliament, it no longer has the votes to change the constitution, the Financial Times reported. The National Front has 139 seats, while a coalition of three opposition parties won 82.

The results were the worst ever for the government.

"This is a defining moment, unprecedented in our nation's history. The people have voted decisively for a new era,'' said Anwar Ibrahim, leader of the opposition coalition.

His People's Justice Party, which has its base in the middle class in the cities, won 31 seats, the most of any of the three allied parties. The Democratic Action Party represents ethnic Chinese while Pas is strong among conservative Malays.

Kosovo sparks early elections in Serbia

BELGRADE, Serbia, March 9 (UPI) -- The Serbian president said he will propose early general elections following the collapse of the coalition government over the issue of Kosovo's independence.

Prime Minister Vojislav Kostunica said the coalition government fell apart when his cabinet rejected proposals to move closer to the European Union following the Kosovo declaration of independence from Serbia Feb. 17, the BBC reported Sunday.

Serbian President Boris Tadic said that new general elections will be the best way to get over the political crisis in Serbia as it allows the people to choose the best way forward.

"I respect the prime minister's decision that he is no longer able to lead the government of Serbia and, when I get the government's decision, I will call an election," Tadic said in a statement

Tadic and Kostunica split over the relationship with the EU. Tadic says embracing the EU will give Serbia a stronger voice over its economy and Kosovo, while Kostunica moved in the opposite direction toward a more nationalist policy.

The prime minister also considers the EU recognition of Kosovo's independence illegal.

Kostunica is supposed to meet with his cabinet Monday to discuss holding general elections May 11.

Air crew disrupts plot on Chinese flight

BEIJING, March 9 (UPI) -- Chinese authorities said the crew of a China Southern Airlines (NYSE:ZNH) flight disrupted an apparent terrorist attack, it was reported Sunday.

The passenger plane was force to land Friday because "some people were attempting to create an air disaster" the chairman of the semi-autonomous Xinjiang province told the state-run Xinhua news agency. An airline official declined to define the event as a terrorist attack, saying that was up to official investigators to decide.

"But we can be sure that this was a case intending to create an air crash," he said.

The BBC said Chinese officials were also concerned over possible terrorist attacks at the Beijing Summer Games.

In related news, a member of the Communist Party of China, Wang Lequan, said authorities would adopt a strike-first policy against militants.

"We are prepared to strike them when the evil forces are planning their activities," Wang said.

ESA launches automated spacecraft

KOUROU, French Guiana, March 9 (UPI) -- The European Space Agency launched its first-ever automated supply ship from French Guiana Sunday to rendezvous with the International Space Station.

Named after the French science-fiction genre pioneer, Jules Verne, the automated transfer vehicle entered a low Earth orbit to eventually dock with the ISS on April 3, the European Space Agency said in a release.

The launch occurred early Sunday morning from the Space Center in South America using a specially-adapted Ariane rocket to handle the 20-ton payload.

The resupply vehicle will dock with the space station automatically, deliver fuel and other supplies, and leave the station in August burning up in the atmosphere upon its descent.