Spanish Prime Minister Pedro Sánchez on Thursday unveiled a cabinet reshuffle that sees Economy Minister Carlos Cuerpo (main image) promoted to deputy prime minister, while Arcadi España takes over as Spain’s new finance minister.
The changes come after María Jesús Montero stepped down from her roles as first deputy prime minister and finance minister to lead the ruling PSOE socialist party’s campaign in the upcoming regional election in Andalusia, Spain’s most populous region, scheduled for 17 May. ALSO READ: Andalusia heads to the polls on 17 May in high-stakes regional vote.
Sánchez praised Montero as ‘a fundamental pillar of this government’ and described her as the best politician he has ever known. Montero, 60, had served as finance minister since 2018 and as first deputy prime minister since late 2023. She will now attempt to return the socialists to power in Andalusia, which has been governed by the right-wing People’s Party (PP) since 2019 after it ended decades of PSOE rule in the region. ALSO READ: Spain’s main opposition party, PP, wins absolute majority in Andalusia election.
Replacing her, Arcadi España, 51, previously secretary of state for territorial policy, will now oversee Spain’s public finances. He takes on the role at a challenging moment, with the government negotiating a new regional funding model and yet to present a national budget for 2026.
At the same time, Sánchez has elevated Carlos Cuerpo, 45, to deputy prime minister while he continues as economy minister. A career economist with experience in European institutions, Cuerpo is regarded as one of the most highly rated members of the cabinet in opinion surveys. Under his leadership, Spain’s economy grew by 2.8% last year, one of the strongest performances in the European Union. ALSO READ: Confirmed: Spanish economy grew 2.8% in 2025, roughly double eurozone average.
His promotion also marks a notable shift within Sánchez’s administration: Cuerpo becomes the first man to be appointed deputy prime minister since the prime minister took office in 2018, when he formed Spain’s first gender-balanced government.
Cuerpo had replaced Nadia Calviño as economy minister after she left the government in January 2024 to head up the European Investment Bank (EIB). ALSO READ: Carlos Cuerpo replaces Nadia Calviño as Spain’s Economy Minister.
The latest reshuffle reflects both political strategy ahead of key regional elections and the government’s focus on maintaining economic momentum while navigating ongoing fiscal negotiations.
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El ministro @carlos_cuerpo será el nuevo vicepresidente primero del Gobierno. Carlos es uno de los economistas y servidores públicos más brillantes de nuestro país.
Y, a partir de mañana, el nuevo ministro de Hacienda será @ArcadiSD, una persona recta, inteligente y… pic.twitter.com/lDSyrGCA9m
— Pedro Sánchez (@sanchezcastejon) March 26, 2026
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