Controversy surrounds appointment of new governor of Bank of Spain
(MENAFN) Spanish Prime Minister Pedro Sanchez has appointed his close associate, Minister Jose Luis Escrivá, as the new governor of the Bank of Spain, a decision announced by Economy Minister Carlos Cuerpo on Wednesday. Escrivá will replace Pablo Hernández de Cos, whose term concluded in June. Cuerpo described Escrivá as the "ideal candidate" due to his extensive experience in the financial sector and deep understanding of the central bank's operations. The selection process for the new governor had been delayed due to disagreements between Sanchez's leftist government and the conservative Popular Party, the main opposition group. While the government has the authority to choose the central bank governor, a long-standing tradition in Spain requires this decision to be made in consultation with the main opposition party, which then selects the deputy governor.
Escrivá's appointment has broken with precedent, as it is highly unusual for a sitting minister to be chosen for this role; typically, the position is held by a prominent economist or technocrat, similar to practices in other European countries. Escrivá, 63, brings a wealth of experience from his career, which began in the research department of the Bank of Spain. He later moved to the European Central Bank and BBVA, Spain's second-largest private bank, where he headed the research department. Since joining Sanchez’s government in 2020, Escrivá has served as the Social Security Minister, leading significant pension reforms, and later as the Digital Affairs Minister. Cuerpo defended the decision, stating that Escrivá's extensive background in major financial institutions and public and private bodies makes him well-qualified for the position.
However, the appointment has been met with criticism and raised concerns about the independence of the Bank of Spain. The leader of the Popular Party, Alberto Núñez Feijó, argued that appointing a sitting minister as governor undermines the central bank's independence, suggesting that the decision is politically motivated. This controversy highlights the ongoing political tension between Sanchez's government and the opposition, particularly over key appointments in Spain's economic institutions. The debate over Escrivá's suitability for the role reflects broader concerns about the balance between political influence and the autonomy of financial oversight bodies in Spain.
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