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Spanish Prime Minister Appoints Carlos Cuerpo as New Economy Minister, Ensuring Continuity in Economic Policy

Friday 29 December 2023 - 11:50

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In a strategic move aimed at ensuring a seamless continuation of economic policies, Spanish Prime Minister Pedro Sanchez has announced the appointment of Carlos Cuerpo as the new economy minister. This decision follows the departure of Nadia Calvino, the outgoing minister, who is set to take on the leadership role at the European Investment Bank a position gaining significance amidst the ongoing conflict in Ukraine.

Carlos Cuerpo, a distinguished graduate of the prestigious London School of Economics, currently heads the treasury department and boasts extensive expertise in public administration and economic policy. Prime Minister Sanchez has praised Cuerpo as an "honest professional" well-equipped to navigate the complexities of the role.

Recognizing the high standard set by his predecessor, Sanchez expressed confidence in Cuerpo's ability to build upon the exceptional work accomplished by Nadia Calvino. In a televised address, the Socialist premier emphasized the importance of continuity and depth in sustaining the nation's economic progress.

While relatively unknown in Spain, Cuerpo has closely collaborated with Calvino, who previously served in the budget department of the European Commission in Brussels before entering politics in 2018. This partnership ensures a smooth transition and reinforces the government's commitment to maintaining economic stability.

The incoming minister faces the challenging task of managing the phasing out of several inflation relief policies in Spain, the Eurozone's fourth-largest economy. These policies include reductions in the value-added tax on electricity and transportation subsidies, scaled back due to a deceleration in economic growth.

The Bank of Spain recently revised its economic growth projections for 2024, citing a slowdown in private consumption and predicting a more significant decline in inflation compared to previous estimates. The country's post-pandemic rebound, which saw a robust growth rate of 5.8 percent in 2022, is expected to moderate to 2.4 percent in 2024. This revision prompted the bank to lower its previous forecast of 1.8 percent growth to a more modest figure of 1.6 percent.

Carlos Cuerpo's appointment as the new economy minister signifies the Spanish government's commitment to steering the nation through these economic challenges. With his extensive knowledge and experience, coupled with the guidance of his predecessor, Cuerpo is poised to lead Spain's economic policies and safeguard its financial well-being in the years ahead.