MercoPress. South Atlantic News Agency

Spain reshuffles cabinet: Perez Rubalcaba new strong man; Moratinos out

Trinidad Jimenez replaces Moratinos

Spain's Prime Minister Jose Luis Rodriguez Zapatero named a new deputy premier and foreign minister Wednesday as part of a major cabinet reshuffle at a time when his ruling Socialists have been trailing conservatives fifteen points in polls.

The changes comes at a time when Spain is grappling with a 20% unemployment rate, the highest in the EU, and attempts to emerge from nearly two years of recession.

Rodriguez Zapatero said the new government would be tasked with “completing the economic and social reforms ... so as to accelerate a recovery of the economy and employment”.

This is the biggest government reshuffle since Rodriguez Zapatero became prime minister in 2004, and it follows Parliament's decision to debate the Socialist draft budget for 2011, which cuts spending by nearly 8% to €122 billion.

The government has secured passage of the budget following deals with two regional parties (Canaries and Basques). Failure to pass the budget could have forced the administration of Rodriguez Zapatero to call an early election.

On naming the five new ministers he said it would be “a renovated and politically strengthened government.”

While announcing the changes, Rodriguez Zapatero said Interior Minister Alfredo Perez Rubalcaba would replace Deputy Prime Minister Maria Teresa Fernandez de la Vega, while keeping his old portfolio. Rubalcaba has led the successful fight against the armed Basque separatist group ETA in Spain since 2006.

Trinidad Jimenez, who until now was the health minister, will take over from Miguel Angel Moratinos as foreign minister. Moratinos is credited with revamping relations with Latin America, especially Cuba and helping with the Middle East peace talks.

Rodriguez Zapatero has ruled out calling an early election ahead of those scheduled for 2012 but has not made known whether he himself will run again.

The prime minister also said Valeriano Gomez will replace Celestino Corbacho as Labour Minister. The move comes just months after the government introduced major labour market reforms and austerity measures that triggered a general strike on Sept. 29.

Rodriguez Zapatero said the ministries for housing and equality would be folded into the health and development ministries, respectively, reducing the total number of ministries from 17 to 15.