Global General

Zapatero tries to boost Spanish govt with reshuffle

(Agencies)
Updated: 2010-10-20 20:22

Spain's Prime Minister Jose Luis Rodriguez Zapatero smiles during a news conference at Moncloa Palace in Madrid Oct 20, 2010. [Photo/Agencies]

MADRID - Spain's Prime Minister Jose Luis Rodriguez Zapatero overhauled his cabinet on Wednesday, trying to strengthen his unpopular government while he implements strict austerity measures to reduce a huge budget deficit.

Related readings:  Strike chaos hits Spain  Spain seeks more investments from China  Spain strike ends on downbeat note in Madrid  Euro may near trough as austerity slows growth

Respected Interior Minister Alfredo Perez Rubalcaba, seen by some as a potential successor to Zapatero, was appointed deputy prime minister while retaining his current position. Zapatero left the Economy Ministry untouched.

Zapatero, a Socialist, is due to face elections at the end of his government's second term in 2012 but his approval rating has sunk below 30 percent, the lowest since he was re-elected in 2008.

Zapatero recently wrapped up deals with two minority parties to pass a 2011 budget with deep spending cuts aimed at assuring investors that Spain can trim its deficit.

If he had not found the votes he could have faced early elections, which polls show he would lose by almost 15 percentage points to the centre-right Popular Party.

 As Interior Minister, Rubalcaba heads the government campaign against Basque separatist group ETA, which is widely seen as successful due to a string of arrests of the group's leaders. He would replace Maria Teresa Fernandez de la Vega in the deputy premiership.

"He's the heir apparent," said Pedro Schwarz, an economist at Madrid's San Pablo University. "He's intelligent and efficient and he does reinforce the government."

Trinidad Jimenez will be Spain's new foreign minister, leaving her post as health minister, Zapatero said in an address carried live on television and radio.

Zapatero also said he was dissolving the ministries of equality and housing. This is part of the government's efforts to cut costs and reduce the deficit.