Spain: Pedro Sánchez reshuffles his government and strengthens his economic team

Spanish Prime Minister Pedro Sánchez has carried out a cabinet reshuffle, appointing Arcadi España as Minister of the Budget and promoting Carlos Cuerpo to the rank of Deputy Prime Minister.

Arcadi España succeeds Maria Jesús Montero, who left her position to lead the Socialist Party's campaign for the upcoming regional elections in Andalusia.

Until now Secretary of State for Territorial Policy, España takes on a strategic portfolio, while the executive negotiates a new financing model with the regions and has not yet presented the national budget for 2026.

For his part, Carlos Cuerpo retains his position as Minister of Economy while also taking on the role of Deputy Prime Minister, a first for a man under the Sánchez government since it came to power in 2018.

This promotion aims to strengthen the economic management of the executive branch in a context of complex budget negotiations and economic uncertainties.

The reshuffle comes at a key moment for the Spanish government, which is facing significant political and financial challenges at the national level.

It also reflects Pedro Sánchez's desire to consolidate his team in the lead-up to new elections.

This readjustment could influence the country's economic trajectory, particularly in terms of public finances and relations with the regions.