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The Prime Minister of Spain Pedro Sanchez on Wednesday appointed his minister for digital affairs Jose Luis Escriva as the Bank of Spain's new governor, raising concerns about the central bank's independence.
Escriva will succeed Pablo Hernández de Cos, who stepped down after his term expired in June, Economy Minister Carlos Cuerpo said, calling him the "ideal candidate" for the post who has "extensive experience in numerous public and private organizations."
The choice of the new Bank of Spain governor had been delayed because Sanchez's leftist government and the main opposition group, the conservative Popular Party (PP), have failed to reach an agreement on a candidate.
While the government has the right to pick the central bank governor, Spanish tradition dictates that it should be made in consensus with the main opposition party, which then chooses the deputy governor.
As in other European nations, the post has generally gone to a leading economist or a technocrat, and not to active politicians.
Sanchez touted Escriva's qualifications, calling him "one of the best economists our country has, one of its leading experts in monetary policy.
"Very few economists have the knowledge, the experience and the statesmanship of Jose Luis Escriva," he added during a brief televised address.
"The Bank of Spain will gain a great governor and the Spanish economy will be strengthened."
But the head of the PP, Alberto Nunez Feijoo, accused the government of seeking to "hijack" the central bank with Escriva's appointment.
"The fact that the government is appointing a minister as governor is very damaging for the independence of the Bank of Spain," he told journalists, warning that the institution would be "discredited".
PP spokesman Borka Semper called the decision to appoint Escriva "unprecedented".
The appointment was also criticised on the left.
The spokesman for hard-left party Podemos, Pablo Fernandez, accused the government of "positioning its pawns" at the bank.
Lewis Musonye
