Sánchez makes changes in the Spanish government: Body vice-president and the Valencian Arcadi España Minister of Finance

MadridWith the departure of María Jesús Montero, the Spanish Prime Minister, Pedro Sánchez, has opted to reinforce the political profile of the Minister of Economy, Carlos Cuerpo, as well as to recruit from outside the Ministry of Finance the person in charge of this portfolio from now on. On the one hand, Cuerpo will assume the first vice-presidency. Meanwhile, the public accounts will be managed by the Valencian Arcadi España, current Secretary of State for Territorial Policy, as Sánchez detailed this Thursday afternoon in an institutional statement from Moncloa. All in all, the changes leave a non-parity central government, with 12 male ministers and 10 female ministers, in addition to Pedro Sánchez.

These changes in the Spanish government are due to the call for elections in Andalusia on May 17, in which the until now first vice-president and Minister of Finance, María Jesús Montero, is the PSOE candidate. In fact, before announcing the moves, Sánchez wanted to thank Montero for her role in the last eight years in government: "She is one of the best politicians, for me the best, I have ever known. She has been a fundamental pillar [...] She has ensured that Spain has the necessary [public] resources to face unprecedented crises; strengthen public services and drive transformation," said Sánchez. The Spanish Prime Minister has conveyed his "enormous gratitude" and has highlighted that she will continue to do all this work from now on in her native land: "She will bring her experience and talent to her land and will do what fulfills her most: help build a more prosperous Spain and Andalusia," he said.

Although Montero's departure obliged Sánchez to make a move, he has opted to limit himself to filling the gap left by Montero and has ruled out a broad government reshuffle, as Moncloa sources had already indicated in recent days.

The political rise of Body

Firstly, the rise of Carlos Cuerpo (Badajoz, 1980) as first vice-president and therefore number 2 of the government once again places the Ministry of Economy at the forefront –Nadia Calviño, his predecessor, also took on this role as head of Economy–. The move coincides precisely on the day Cuerpo had to defend in Congress the Spanish government's decree of measures to face the economic impact derived from the war in the Middle East and which has prospered with the 'yes' from Junts and the abstention of the PP.

The truth is that his name has been floated not only for this position but also to take over the Ministry of Finance: "If they include me in the predictions, it means they believe that good work is being done in the field of economic policy," Cuerpo reflected this week when the press asked him about the reports that placed him as Montero's successor.

When Cuerpo took the reins of Economy in December 2023, it was seen as a technical and continuity replacement for Nadia Calviño. It is true that over time he has assumed a more political prominence – with the first vice-presidency, this increases even more –, but his calm and cordial demeanor, as well as his dialoguing tone, are still highlighted, something that clashes in a context of strong political polarization. "He is doing an exceptional job in the Ministry of Economy and I am convinced that he will be a fantastic first vice-president of the Spanish government," Sánchez has highlighted.

A "convinced" federalist

For his part, although the appointment of Arcadi España (Carcaixent, 1974) as Minister of Finance does not mean looking inside this portfolio –some voices pointed to a promotion for the current Secretary of State for Finance and Montero's right-hand man, Jesús Gascón–, he is not a profile unfamiliar with public accounts, nor with the different territorial sensitivities regarding such thorny issues as the distribution of resources by the State. In fact, España was currently Secretary of State for Territorial Policy and has been part of bilateral negotiations with Catalonia or the Basque Country. "He is intelligent, committed, and will continue the work done so far by Montero," highlighted Sánchez.

"He is not only a federalist, but a firm believer in the decentralization of the State," summarizes a close friend who has worked with him closely for years. His moderate tone and dialoguing character are also highlighted. An economist by training and a cycling enthusiast, beyond his time in the Spanish government, Arcadi España stands out for his career in the Valencian Generalitat. He is considered, in fact, a "man of Ximo Puig" whom he regards as a role model, in addition to Vicent Soler, a historical figure of the PSPV. Now, the new Minister of Finance will have to unblock issues such as the new regional financing model –the Valencian Country is, precisely, one of the most underfunded communities. "I am convinced that he will push for it to move forward," says someone who knows him firsthand.

It was in his native land that he forged his path within the socialist ranks. Between 2013 and 2015, he was Head of Cabinet of the PSPV. Afterwards, he made the leap as Director of Ximo Puig's cabinet. In 2019, the former Valencian president hired him as Minister of Territorial Policy, Public Works, and Mobility, and in May 2022, with the first major reshuffle of the Botànic Government, he took over the Valencian Ministry of Finance and Economic Model.

With this background, España assumes the commitment to present the general state budgets for 2026, but above all the commitment to try to make reality two of Montero's major pending tasks: the reform of the regional financing model, already underway after a tough three-way negotiation between the Ministry of Finance, the PSC, and ERC, and the forgiveness of a portion of regional debt, a measure that is barely being processed in Congress.

With this Thursday's change, Pedro Sánchez's government only retains three of the ministers who joined in 2018 with his first term: the Minister of Defense, Margarita Robles, the Minister of the Interior, Fernando Grande-Marlaska, and the Minister of Agriculture, Fisheries and Food, Luis Planas. "Experience, integrity and technical solvency. This is the profile of this government," Sánchez summarized when he finished giving the details of the announced changes, with which he is resuming the final stretch of the legislature.