Spain names Minister Escriva new central bank governor

The Spanish government has appointed Digital Transformation and Civil Service, Jose Luis Escriva as the new governor of the Bank of Spain. Economy Minister Carlos Cuerpo made the announcement to a parliamentary committee on Wednesday.

The appointment comes in time to take part in the European Central Bank (ECB) upcoming meeting, where a decision on interest rate cuts is expected.

Escriva, a seasoned economist with experience at both the Bank of Spain and the ECB, will take over from Pablo Hernandez de Cos, whose term ended in June. The appointment has been a subject of political debate in Spain, with the opposition party expressing concerns about the suitability of a serving minister for the role.

Escriva’s first major task will be to attend the ECB’s Governing Council meeting on September 11-12, where a second reduction in borrowing costs is anticipated. His previous experience at the ECB may give him a unique perspective among his colleagues.

The selection process for the new governor was delayed due to political disagreements. While the ruling party has traditionally chosen the central bank governor, the opposition party has been advocating for a change in this convention. It remains uncertain whether the current arrangement will continue, and the appointment of the deputy governor has yet to be announced.

Escriva’s appointment has been praised by both the government and the Prime Minister, who have highlighted his extensive experience and qualifications. However, the opposition party has criticized the decision, arguing that it is inappropriate for a serving minister to hold the position.

The appointment of Escriva marks the continuation of a long tradition of male leadership at the Bank of Spain. This decision has raised concerns about the lack of diversity on the ECB’s Governing Council, where only two of the 26 policymakers are female.

Attribution:Bloomberg