Spanish PM picks minister as central bank chief, sparking row

Spanish PM picks minister as central bank chief, sparking row

In a controversial appointment,Jose Luis Escriva swaps a ministerial portfolio for  the post of Spain's new central bank chief
In a controversial appointment,Jose Luis Escriva swaps a ministerial portfolio for the post of Spain's new central bank chief. Photo: JAVIER SORIANO / AFP/File
Source: AFP

Spanish Prime Minister Pedro Sanchez on Wednesday appointed his minister for digital affairs Jose Luis Escriva as the Bank of Spain's new governor, raising concerns about the central bank's independence.

Escriva will succeed Pablo Hernandez de Cos, who stepped down after his term expired in June, Economy Minister Carlos Cuerpo said, calling him the "ideal candidate" for the post who has "extensive experience in numerous public and private organisations."

The choice of the new Bank of Spain governor had been delayed because Sanchez's leftist government and the main opposition group, the conservative Popular Party (PP), have failed to reach an agreement on a candidate.

While the government has the right to pick the central bank governor, Spanish tradition dictates that it should be made in consensus with the main opposition party, which then chooses the deputy governor.

Read also

Mahama blames Akufo-Addo government for drought in the north

As in other European nations, the post has generally gone to a leading economist or a technocrat, and not to active politicians.

Sanchez touted Escriva's qualifications, calling him "one of the best economists our country has, one of its leading experts in monetary policy.

"Very few economists have the knowledge, the experience and the statesmanship of Jose Luis Escriva," he added during a brief televised address.

"The Bank of Spain will gain a great governor and the Spanish economy will be strengthened."

But the head of the PP, Alberto Nunez Feijoo, accused the government of seeking to "hijack" the central bank with Escriva's appointment.

"The fact that the government is appointing a minister as governor is very damaging for the independence of the Bank of Spain," he told journalists, warning that the institution would be "discredited".

Read also

Turmoil in Italy over plan to hike tourist tax

'Not democratically sound'

PP spokesman Borka Semper called the decision to appoint Escriva "unprecedented".

"As governor of the Bank of Spain, Mr.Escriva is going to supervise Mr. Escriva's own management when he was a member of the government," he added during an interview with Spanish public radio.

The appointment was also criticised on the left. The spokesman for hard-left party Podemos, Pablo Fernandez, accused the government of "positioning its pawns" at the bank.

Escriva's nomination "is not democratically sound," he added.

An economist by training, Escriva, 63, began his career at the research department of the Bank of Spain before moving to the European Central Bank and then BBVA, Spain's second-largest private bank, where he became head of research.

He joined Sanchez's government in 2020 as social security minister and oversaw an overhaul of the pension system as well as the introduction of a minimum basic income scheme which tops up the revenues of the lowest income earners.

Read also

NDC MPs sound alarm over deployment of soldiers to border towns over check grain smuggling

Escriva was appointed digital affairs minister last year.

His appointment will be made by decree on Thursday, according to a government source, so it will not need to be approved in parliament where Sanchez's coalition government lacks a majority.

As the chief of the Bank of Spain, he will become a member of the European Central Bank's governing council.

The Bank of Spain has been led on an interim basis by Deputy Governor Margarita Delgado, whose three-month mandate cannot be extended beyond September 11.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.