Spain Cabinet Reshuffle: Carlos Cuerpo Becomes Deputy PM as Arcadi España Takes Over as Finance Minister

Sánchez Reshuffles as Montero Heads to Andalusia

Prime Minister Pedro Sánchez unveiled a cabinet reshuffle on Thursday, prompted by the departure of María Jesús Montero — one of the most prominent figures in his government — who is stepping down from her dual role as First Deputy Prime Minister and Finance Minister to lead the ruling PSOE's campaign in the upcoming Andalusia regional election on 17 May.

Sánchez paid tribute to Montero, calling her "a fundamental pillar of this government" and describing 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 now turns her attention to Andalusia — Spain's most populous region — where the PSOE will attempt to end seven years of right-wing People's Party (PP) government. The PP has held Andalusia since 2019, when it ended decades of uninterrupted Socialist rule in the region.

Carlos Cuerpo: Deputy PM — and the First Man in the Role Under Sánchez

Carlos Cuerpo, 45, has been elevated to First Deputy Prime Minister while retaining his position as Economy Minister — a dual role that gives him considerable weight at the heart of government.

The promotion carries a notable historical footnote: Cuerpo becomes the first man to be appointed Deputy Prime Minister under Sánchez, who formed Spain's first gender-balanced government when he took office in 2018. Every previous deputy prime minister in his administrations has been a woman.

A career economist with significant experience in European institutions, Cuerpo is consistently rated as one of the most highly regarded ministers in the cabinet in public opinion surveys. His tenure as Economy Minister has coincided with a period of strong economic performance — Spain's economy grew by 2.8% last year, roughly double the eurozone average and one of the fastest rates in the EU. He had taken over the economy brief in January 2024 from Nadia Calviño, who left to head the European Investment Bank (EIB).

Arcadi España: New Finance Minister at a Challenging Moment

Taking over the Finance Ministry is Arcadi España, 51, previously Secretary of State for Territorial Policy. España steps into the role at a demanding moment for Spain's public finances:

• The government is in the midst of complex negotiations over a new regional funding model — one of the most politically contentious issues in Spanish fiscal policy
• A national budget for 2026 has yet to be presented, leaving the government operating under extended previous budgets
• The €5 billion emergency energy package approved this week in response to the Middle East war adds further pressure to fiscal planning

España is described by those who know him as "upright, intelligent" — words used by Sánchez himself in announcing the appointment.

The Bigger Picture: Politics and Economics at a Pivotal Moment

The reshuffle reflects the dual pressures facing Sánchez's government heading into spring 2026. On the political front, the Andalusia election on 17 May is a major test — the region is Spain's largest by population, and a PSOE victory would mark a significant reversal of fortune after years in opposition there. Deploying Montero, widely seen as one of the government's strongest performers, signals how seriously the PSOE is taking the contest.

On the economic front, the elevation of Cuerpo — the minister most closely associated with Spain's recent growth record — to the Deputy PM role signals that economic management will remain a top priority as the government navigates the energy shock, inflationary pressures, and the ongoing fallout from the Middle East conflict.

This article is based on reporting from Spain in English, published March 27, 2026. This article is for informational purposes only.