Spanish Prime Minister Pedro Sanchez has announced the appointment of Carlos Cuerpo, the current head of the treasury department, as the new economy minister. Cuerpo, an alumnus of the London School of Economics, will succeed Nadia Calvino, who is departing to lead the European Investment Bank, gaining significance amid the ongoing conflict in Ukraine.
Sanchez commended Cuerpo as an “honest professional” with a “deep knowledge of public administration and economic policy.” In a televised address, the Socialist premier expressed confidence that Cuerpo would successfully continue and enhance the exceptional work carried out by Nadia Calvino, acknowledging the high standards set by his predecessor.
While relatively unknown in Spain, Cuerpo closely collaborated with Calvino, who previously served in the European Commission’s budget department in Brussels before embarking on her political career in 2018.
The new economy minister faces the challenge of managing the phasing out of various inflation relief measures in Spain, the eurozone’s fourth-largest economy. This includes reductions in the value-added tax on electricity and transportation subsidies as economic growth slows.
The Bank of Spain recently revised the country’s economic growth forecast for 2024, citing a deceleration in private consumption. Despite anticipating a moderation in inflation, the bank expects growth to slow to 2.4% from the 5.8% rebound experienced in 2022, with a further expansion of just 1.6% in 2024, below the bank’s earlier projection of 1.8%.