The latest government reshuffle driven by President Pedro Sánchez seeks to place the economy at the center of the agenda in the final stretch of the legislature and, at the same time, keep under control the delicate relationship with his parliamentary partners, key to his objective of exhausting the mandate until 2027.
The rise of the Minister of Economy, Trade and Business, Carlos Cuerpo, to the First Vice-Presidency aims to send a clear signal: for Sánchez it is "fundamental" that the national economy continues to advance in a complex international scenario, with still unpredictable effects derived from the war in Iran, according to sources from the Executive.
By placing Arcadi España at the head of the Treasury, the president opts for a negotiating profile, backed by his track record of dialogue with the autonomous communities as Secretary of State for Territorial Policy and, before, by his role in the Botànic Pact of 2015 in the Valencian Community, of which he was the main architect, as they recall in Moncloa.
Until now, Spain has registered an outstanding macroeconomic performance, with annual growth above the EU average and that of the major European economies. This behavior has been decisive for Sánchez to have chosen Cuerpo as the replacement for María Jesús Montero as the 'number two' of the Executive.
The priority of the Government: to shield the anti-crisis measures
In the current context, Sánchez has been warning that the war will have a direct impact on the pockets of citizens, so that the package of measures approved a week ago and validated in Congress has become the main priority of the cabinet.
If the conflict prolongs, the Government does not rule out new actions and the validation of the housing decree is still pending, which Sumar forced the PSOE to push through despite not currently having the necessary support in the Lower House, although housing continues to be one of the problems that most concern Spaniards.
Cuerpo already had a preview of his new relevance in the Executive when he defended in Congress the validation of the anti-crisis decree which includes measures to curb the rise in energy costs and, in particular, of fuels, whose price increase consumers were already noticing.
The handover after Montero's departure and Cuerpo's role
Hours after that vote in Congress which meant a triumph for the Government, Sánchez appeared at La Moncloa to announce a limited reshuffle intended to cover Montero's departure for Andalusia.
Body and Spain knew their future destiny a few days in advance, according to various sources from the Council of Ministers, which explain that Sánchez activated the change as soon as the Andalusian president, Juanma Moreno (PP), made official the call for regional elections for Monday, March 23.
He called Cuerpo to his office in La Moncloa to inform him of the appointment and conveyed to him that he should maintain his way of working. "What he told me is that I should continue to be myself," Cuerpo recounted, thanking for the trust in his first statements after taking on the new portfolio.
Sánchez usually claims that, since his arrival at La Moncloa, the economy and employment have evolved upwards and he is aware of the need to maintain those good data and, furthermore, that the citizenry perceives it in their daily lives. If the PSOE wants to retain options in the next general elections, it cannot afford to lose this asset.
Arcadi España, negotiation and Budgets at the center
In parallel, the new head of Finance will have to face the new autonomous financing model that Montero left prepared and that, for the moment, the communities are reluctant to accept.
His/Her most delicate mission will be to push forward the General State Budgets, the first of the legislature, and thus avoid the anomaly of completing the mandate without new public accounts.
Arcadi España arrives backed by a history of "dialogue and negotiation", according to what they emphasize in Moncloa, and an extensive career in the Valencian Generalitat as Minister of Territorial Policy and subsequently of Finance. Before, he served as chief of staff for president Ximo Puig and was the "great architect" of the tripartite government of 2015 between socialists, Compromís and Podemos.
In the Ministry of Territorial Policy headed by Ángel Víctor Torres, where España was Secretary of State since 2023, they celebrate his promotion and attribute to him having lowered the tension with the autonomous communities, with which, they assure, he improved coordination despite the fact that most are governed by the PP.
After his designation became known, Torres encouraged him to take a break and celebrate it, but España returned to the Ministry to continue with calls and close matters. In his circle, they describe him as a "serious and tireless" leader, dedicated to political management. "His life is this," they summarize.