Spain's Prime Minister Jose Luis Rodriguez Zapatero overhauled his cabinet on Wednesday, aiming to strengthen his unpopular government while battling to tame a massive public deficit and revive a stagnant economy. Interior Minister Alfredo Perez Rubalcaba, who has a high approval rating and is seen by some as a successor to Zapatero, becomes the new deputy prime minister in the biggest reshuffle since the Socialists came to power in 2004.
"It's time for another kind of political action, a different direction and drive from the government," Zapatero said in a speech announcing five cabinet changes on top of Rubalcaba assuming the extra role, and the closure of two ministries. Spaniards suffering budget cutbacks, salary reductions and the highest unemployment rate in the eurozone have punished the government, whose approval ratings have sunk below 30 percent. 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 which ballooned out of control after stimulus measures to stave off a grim recession.
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. His term is scheduled to end in 2012. Zapatero made no changes at the Economy Ministry, run by Elena Salgado, who implemented the tough austerity measures brought in after investors punished Spain's sovereign debt on concerns the country was moving toward a Greek-style bailout.