José Luis Rodríguez Zapatero, Spanish prime minister, on Tuesday (07/04/09) replaced his finance minister and made five other cabinet changes just a year into his second administration in what he said was “a new push” to cope with the economic crisis.
He handed the finance portfolio to Elena Salgado – a 59-year-old industrial engineer who had been minister of public administration – and dropped Pedro Solbes, a former European commissioner.
Mr Solbes, 66, was regarded as the voice of economic orthodoxy in the government and had openly disagreed with Mr Zapatero on the wisdom of Spain’s costly fiscal stimulus plans as the crisis unfolded. After five years in his latest stint as minister, he had also made clear his wish to retire from politics and his departure had been expected for months.
But the appointment of Ms Salgado, a low-profile Zapatero loyalist, was a surprise, although she is a veteran of Socialist administrations and has an economics degree.
The Spanish economy has been hit particularly hard by the collapse of the housing market and suffers the highest unemployment rate – 15.5 per cent of the workforce – in the eurozone.
Official forecasts have been persistently over-optimistic but independent analysts say the economy will shrink both this year and next. The latest and grimmest forecast was issued this week by CA Cheuvreux, which said gross domestic product would decline by 4.5 per cent in 2009 and a further 1.1 per cent in 2010.
Mr Zapatero said his cabinet reshuffle represented a “change of rhythm”, and he defended Ms Salgado as a hard-working and “an extraordinarily effective manager”.
Last month, Mr Zapatero said in an interview that Spain would launch a new round of stimulus spending, focused on renewable energy and biotechnology, if previous efforts failed to boost the economy by the summer. The next day, Mr Solbes said there was “no room” for further spending of this kind.
Manuel Chaves, former governor of Andalucia, will replace Ms Salgado in the renamed ministry for territorial co-operation, and will have the crucial task of negotiating the financing of Spain’s autonomous and sometimes fractious regional governments.
José Blanco, secretary of the governing Socialist party and a key strategist, was named public works minister, while Angel Gabilondo, a renowned academic, will be education minister.
Trinidad Jiménez, a long-time confidante and fierce ally of Mr Zapatero, was awarded the health and social policy ministry, while cinema director Angeles González-Sinde becomes minister for culture.
Copyright The Financial Times Limited 2009
He handed the finance portfolio to Elena Salgado – a 59-year-old industrial engineer who had been minister of public administration – and dropped Pedro Solbes, a former European commissioner.
Mr Solbes, 66, was regarded as the voice of economic orthodoxy in the government and had openly disagreed with Mr Zapatero on the wisdom of Spain’s costly fiscal stimulus plans as the crisis unfolded. After five years in his latest stint as minister, he had also made clear his wish to retire from politics and his departure had been expected for months.
But the appointment of Ms Salgado, a low-profile Zapatero loyalist, was a surprise, although she is a veteran of Socialist administrations and has an economics degree.
The Spanish economy has been hit particularly hard by the collapse of the housing market and suffers the highest unemployment rate – 15.5 per cent of the workforce – in the eurozone.
Official forecasts have been persistently over-optimistic but independent analysts say the economy will shrink both this year and next. The latest and grimmest forecast was issued this week by CA Cheuvreux, which said gross domestic product would decline by 4.5 per cent in 2009 and a further 1.1 per cent in 2010.
Mr Zapatero said his cabinet reshuffle represented a “change of rhythm”, and he defended Ms Salgado as a hard-working and “an extraordinarily effective manager”.
Last month, Mr Zapatero said in an interview that Spain would launch a new round of stimulus spending, focused on renewable energy and biotechnology, if previous efforts failed to boost the economy by the summer. The next day, Mr Solbes said there was “no room” for further spending of this kind.
Manuel Chaves, former governor of Andalucia, will replace Ms Salgado in the renamed ministry for territorial co-operation, and will have the crucial task of negotiating the financing of Spain’s autonomous and sometimes fractious regional governments.
José Blanco, secretary of the governing Socialist party and a key strategist, was named public works minister, while Angel Gabilondo, a renowned academic, will be education minister.
Trinidad Jiménez, a long-time confidante and fierce ally of Mr Zapatero, was awarded the health and social policy ministry, while cinema director Angeles González-Sinde becomes minister for culture.
Copyright The Financial Times Limited 2009
