Spain's new Economy Minister Roman Escolano (R) and his predecessor Luis de Guindos smile during a taking over ceremony at Economy Ministry in Madrid, Spain, March 9, 2018. Reuters/Sergio Perez
As Spain’s new economy minister, Roman Escolano’s task will be to preserve an economic recovery now in its fifth year while championing tighter European integration.
Rajoy appointed Escolano to lead the Spanish economy on Wednesday, replacing Luis de Guindos who is preparing to become vice president of the European Central Bank. Escolano takes up his post at the ministry after four years at the European Investment Bank where he helped oversee risk management and the regulatory framework for banks.
As a former chief economic adviser in the government of Jose Maria Aznar and head of institutional relations at Banco Bilbao Vizcaya Argentaria SA, Escolano combines experience in the highest echelons of the Spanish state and banking industry. In a January interview with Bloomberg, he stressed the importance of deeper European integration and said the surprising strength of the region’s recovery offered an opportunity to pursue that aim.
"It’s very important to consolidate the shift in tone in Europe,” he said. "The advances we could see in the coming months in the European framework could be very good and we all trust they will be.”
With Angela Merkel due to take up her fourth term in office in Germany and French President Emmanuel Macron pushing for eurozone reforms, European officials are seeking ways to revamp the single currency bloc.
While Spain pulled back from the European scene at the start of Rajoy’s government in 2012 to deal with the financial crisis, the government is seeking to revive its voice in Brussels as the economy enters its fifth year of growth.
Rajoy has in the past called for a common budget and a euro-area finance minister and also revived the idea of issuing joint debt -- euro bonds -- last year.
Back home, Escolano will have to deal with unfinished business such as completing the sale of the state’s 60 percent stake in Bankia, the lender bailed out and nationalized in 2012, and dealing with potential legal repercussions from the resolution and sale last year of Banco Popular Espanol SA.
Escolano joins the Spanish government at a time when opinion polls suggest Rajoy is quickly losing support. With the prime minister betting on an ongoing recovery to boost his chances in elections due 2020, his lack of a parliamentary majority are a hindrance to efforts to foster economic momentum and job creation.
