Spain’s Sanchez reboots agenda with cabinet reshuffle

Significance

The reshuffle involves some significant changes, including the promotion of Economy Minister Nadia Calvino as first deputy prime minister. Other notable changes include new ministers at the head of foreign policy and territorial policy, which deals with relations with Catalonia.

Impacts

• Sanchez has increased the number of women and young people in the new cabinet; this could broaden his appeal among centrist voters.
• While Madrid will continue to respect EU policy parameters, Sanchez’s continued reliance on UP and ERC support will worry investors.
• Sanchez’s leadership of the PSOE could come under threat if he is seen as ‘giving too much’ to Catalan nationalists.