After initial hesitation, moderate Pedro Francke agrees to become Peru’s economy minister

RIO DE JANEIRO, BRAZIL – The President of Peru, Pedro Castillo, completed his cabinet of ministers with the appointment of economist Pedro Francke in the office of Economy and Finance and lawyer Aníbal Torres in Justice and Human Rights.

Francke and Torres, well-experienced and well-known in their professions, were sworn in after having held last minute conversations with Castillo to overcome some apparent differences which prevented them from taking office with the other 16 ministers who were already appointed on Thursday.

According to local media, both disagreed with the appointment as Prime Minister of legislator Guido Bellido, who is considered part of the hard left wing of the ruling Peru Libre party, of Marxist tendency.

In fact, the absence on Thursday of Francke, who was Castillo’s economic spokesman in recent weeks, caused surprise and almost generalized rejection, as market observers thought he would give the reassurance of maintaining a moderate economic policy.

The markets reacted very negatively to the lack of an appointment, with Friday being a disastrous day for the stock market, with a fall of 5.8%, while the Peruvian sol tanked.

Pedro Francke, 60, was harshly criticized by Bellido and Peru Libre leader Vladimir Cerrón for his centrist and conciliatory positions with economic orthodoxy. On Thursday, he left Lima’s National Theater, where the other ministers were sworn in, just minutes before the ceremony.

However, the economist had a new meeting with Castillo, and this Friday, Prime Minister Bellido expressed his public support for him in a message published on Twitter.

“Economist Pedro Francke has our full support for implementing the economic policy of stability, expressed in the Bicentennial plan without corruption in the country. We will work together and unity for the homeland,” Bellido maintained.

Upon taking office, Francke swore, “for a sustained advance towards good living, for equal opportunities without distinction of gender, ethnic identity or sexual orientation, for democracy and national consensus.”

Torres, for his part, is a 78-year-old lawyer and legal theorist who gained great prominence by leading the legal defense of the Peru Libre party against the barrage of challenges filed by right-wing Keiko Fujimori in an attempt to reverse her defeat in the June 6 presidential elections.

Castillo, who assumed the Peruvian presidency for the 2021-2026 period on Wednesday, appointed most of the ministers in his cabinet with a distinct political profile dominated by far-leftists, some technicians and only two women.

Among the most recognized figures are, in addition to Francke and Torres, Vice President Dina Boluarte, who became Minister of Development and Social Inclusion; sociologist Héctor Béjar, Minister of Foreign Affairs; and physician Hernando Ceballos, Minister of Health.

Nevertheless, this cabinet put an end to the gender parity established in recent years in Peru by including only two women, since, in addition to Boluarte, sociologist Anahí Durand assumed the cabinet post of Women and Vulnerable Populations.