Spain’s new conservative prime minister was sworn in and he later appointed his Cabinet, including ministers charged with lifting the country out of its severe economic crisis.

Mr Mariano Rajoy was sworn in as premier before King Juan Carlos. Mr Rajoy then appointed 12 ministers and said close party colleague, Ms Soraya Saenz de Santamaria, would be government spokeswoman and deputy premier.

Mr Rajoy’s Popular Party won a landslide victory in November 20 elections on promises to lift Spain out of economic turmoil.

Spain has a eurozone-high unemployment rate of 21.5 per cent, a swollen deficit and a stalled economy after a near two-year recession triggered by the collapse of a real estate bubble in 2009.

Mr Luis de Guindos was appointed Economy Minister and he will be aided by Mr Cristobal Montoro, who was appointed Finance Minister.

Mr Rajoy named Mr Jose Manuel Garcia Margallo as foreign minister and placed Mr Jorge Fernandez Diaz in charge of security as interior minister.

Spain has already made sharp cuts to its national spending and introduced several reforms in a bid to convince investors and the European Union but the measures have so far failed to boost the economy to any great extent.

The country’s borrowing costs spiralled amid fears it might need a bailout like Greece, Ireland and Portugal but in recent weeks they have begun to slip back.

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