MADRID: Spanish Prime Minister Pedro Sanchez has appointed Carlos Cuerpo, the current head of the treasury department, as the new economy minister.
Cuerpo, a graduate of the London School of Economics, will take over from Nadia Calvino, who is leaving to lead the European Investment Bank. The move comes as the European economy faces challenges amid the conflict in Ukraine.
Cuerpo, aged 43, will be tasked with managing the conclusion of various inflation relief policies in Spain, including reductions in the value-added tax on electricity and transportation subsidies, amid a slowing economy. Sanchez praised Cuerpo as an “honest professional” with a “deep knowledge of public administration and economic policy.”
Acknowledging the high standard set by his predecessor, Nadia Calvino, Sanchez expressed confidence in Cuerpo’s ability to continue and deepen the exceptional work done by Calvino. Although relatively unknown in Spain, Cuerpo collaborated closely with Calvino during her tenure as the economy minister since Sanchez assumed office in 2018. Calvino’s appointment was aimed at reassuring markets concerned about the minority Socialist government’s reliance on far-left and separatist parties.
Calvino, who proposed Cuerpo as her successor, oversaw Spain’s impressive economic growth of 5.8 percent last year, one of the fastest rates in Europe. However, the Bank of Spain recently revised down the country’s economic growth outlook for 2024, citing slowing private consumption. Despite the economic challenges, Calvino’s successor, Cuerpo, is expected to navigate the complexities and build on the achievements of his predecessor.
Additionally, Budget Minister Maria Jesus Montero, whose performance was lauded by Sanchez, will take over as the first deputy premier. In this role, the 57-year-old from the Andalusia region will chair weekly cabinet meetings when Sanchez is unavailable. The appointments come at a crucial juncture as Spain addresses economic concerns and transitions leadership in key government positions.
