Spanish Prime Minister Pedro Sanchez on Friday appointed Carlos Cuerpo, the head of the treasury, to be his new economy minister.
Cuerpo, who studied at the London School of Economics, will replace Nadia Calvino, a heavyweight in his cabinet who is leaving to head the European Investment Bank, the bloc's lending arm.
After being sworn in, the 43-year-old vowed to "continue the downward path of the debt and deficit, and doing so in a credible way."
The Spanish government has pledged to bring the budget deficit to the equivalent to 3.0 percent of gross domestic product in 2024 -- withing EU limits -- from 3.9 percent that it expects this year, and 4.8 percent in 2022.
Little known in Spain, Cuerpo worked closely with Calvino, 55, who served as economy minister since Sanchez came to power in 2018.
Her appointment was seen as an attempt to send a message of stability to the markets which were concerned about the new minority Socialist government's reliance on the far-left and on Basque and Catalan separatist parties to pass legislation.
Calvino, who previously worked in the European Commission's budget department in Brussels, reportedly proposed Cuerpo as her replacement.
On her watch, Spain's economy expanded by 5.8 percent last year -- one of the fastest rates in Europe -- as it rebounded from the pandemic and unemployment is hovering near its lowest rate in around 15 years.
But the Bank of Spain recently lowered the country's economic growth outlook for 2024, citing slowing private consumption even as it expected inflation to ease more than predicted earlier.
It estimates growth will have slowed down to 2.4 percent this year, and will expand by just 1.6 percent in 2024, below the bank's previous forecast of 1.8 percent.
Sanchez said Calvino had "set the bar high" but he was confident Cuerpo would "give continuity and depth" to her "exceptional work".
The premier also announced that Budget Minister Maria Jesus Montero, whose performance he described as "brilliant", would succeed Calvino as his first deputy premier.
As deputy prime minister, the 57-year-old -- who comes from the vote-rich southern region of Andalusia -- will chair weekly cabinet meetings when Sanchez is not able to do so.
