The Treasury proposes Inés Olóndriz, a senior official in the ministry, to preside over the Fiscal Authority

MadridThe Minister of Finance, María Jesús Montero, has already chosen a candidate for the presidency of the Independent Authority for Fiscal Responsibility (AIReF): Inés Olóndriz, currently the Secretary General for Regional and Local Financing, a position within the Ministry of Finance, as sources close to the process have explained and confirmed to ARA. This is the candidate the Ministry of Finance has put forward to the parliamentary groups in Congress, who will have to ratify the nomination in the Finance Committee, to replace the current president of the agency, Cristina Herrero, whose term expires this Tuesday, March 3. Sources within the Ministry headed by María Jesús Montero emphasize that Olóndriz has earned the respect of both the public and private sectors. The Treasury highlights her technical background and over 30 years of work experience, which has given her a deep understanding of the workings of the three levels of public administration in Spain: national, regional, and local. It's important to note that, among other things, the Independent Authority for Fiscal Responsibility (AIReF) is dedicated to monitoring and controlling public spending across all levels of government and, consequently, fiscal sustainability. In fact, Olóndriz arrives at a time when her predecessor has not hesitated to criticize the lack of a national budget.

Olóndriz was appointed Secretary General for Regional Financing in 2020. However, she had previously worked as a senior analyst in the Sovereign & International Public Finance team at S&P Global Ratings, monitoring local and regional governments, as well as public entities in Spain and the United Kingdom. For all these reasons, sources at the Ministry of Finance believe she more than meets the profile required to chair the Independent Authority for Fiscal Responsibility (AIReF).

Six-year term

By law, Herrero not only could not return to that position, but there is no interim appointment at AIReF. His dismissal is automatic, and therefore the Spanish government was required to find and propose a candidate before that date—had this not occurred, the director of the budget analysis division would have assumed supervisory functions, but his managerial capacity is limited.

Montero had been considering names for weeks and, in the end, opted for someone from within the government. Once the Council of Ministers approves the nomination, it will go to Congress. There, it will need the approval of an absolute majority in the Finance Committee, where it will also have to appear. It is important to note that majorities in the committee are different from majorities in the plenary session of the Spanish lower house. In the committee, the Spanish government only needs the support of all coalition partners except, for example, Junts. The PP, Vox, and Carles Puigdemont's party together hold 18 votes, while the remaining parties together hold 19. If it fails to pass by an absolute majority in Congress, a simple majority in the Senate, including in its Finance Committee, would suffice.

The Herrero precedent

In 2020, Herrero's candidacy, proposed by Pedro Sánchez's government, was unanimously endorsed, although the PP, Vox, and Ciudadanos parties expressed reservations. (Herrero had worked closely with his predecessor, the former Socialist minister and current Governor of the Bank of Spain, José Luis Escrivá. In fact, Escrivá was the first to hold the presidency of AIReF. He was chosen by Mariano Rajoy's government (PP), but the PSOE abstained from the vote.

During these years, some of the agency's opinions have created friction with the Spanish executive branch, especially those related to the pension system. "Independent institutions are uncomfortable [...]. If you're not independent, something is wrong," Herrero reflected a few weeks ago. Herrero left the task of modifying the law that regulates AIReF to make it more "rigorous" regarding the tasks it must carry out, as an outstanding one for the person who will now lead AIReF.