Spain’s Socialists carve out coalition cabinet focused on the economy

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Spain’s Socialists carve out coalition cabinet focused on the economy
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Sanchez’s government will include four deputy prime ministers – a first in modern Spanish history – three of whom are women

Nadia Calvino, in charge of the economy ministry since 2018 and last year floated as a candidate to replace Christine Lagarde in running the International Monetary Fund, will co-ordinate economic affairs and digital transformation.

The fourth deputy prime minister will be Pablo Iglesias, the leader of Unidas Podemos, who will handle social rights and sustainable development. The far-left party will also take four ministries, ranging from higher education to consumer affairs.A senior Podemos official told Reuters the party was caught off guard by the addition of a fourth deputy prime minister, which he saw as a bid by the Socialists to limit Iglesias’ influence.

The government’s desire to prioritize the economy coloured several of its choices. Arancha Gonzalez Laya, currently assistant secretary-general of the United Nations and a former World Trade Organization official, will replace Josep Borrell as foreign minister.Jose Luis Escriva, head of Spain’s budget watchdog and former chief economist at Spanish bank BBVA, will lead the ministry responsible for social security – charged with carrying out the long-awaited pension reform – as well as migration.

“We don’t expect a left-wing government to behave anything like we saw in Italy, where two different breeds of populism, both with euro-sceptic components, drove policy making to extremes, severely undermining growth and fuelling major financial markets tensions,” it said.

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