By Andrew Hay
MADRID, Dec 17 (Reuters) - Spain's government on Wednesday denied media reports Economy Minister Pedro Solbes could soon step down after the 66-year old said he had reached an age when it was time to look at other options.
Solbes made the comments on Tuesday, stoking talk Prime Minister Jose Luis Rodriguez Zapatero would replace his veteran minister after policy disagreements between the two.
Zapatero quickly came to Solbes' defence, saying the two-term economy minister was doing a good job and would complete his task to pull Spain out of a severe economic crisis.
That did not stop Spanish newspapers reporting Solbes was exhausted by his job, tired of Zapatero and close to quitting.
"His commitment to the prime minister is for this legislature and the prime minister is not considering any cabinet changes. There is nothing more to say on the matter," Solbes spokeswoman said on Wednesday.
Prior to his reelection in March this year, Zapatero persuaded Solbes to stay on into a second term, given the scale of Spain's problems as it faced the collapse of a decade-long housing boom and the global credit crunch.
Solbes made no secret of his intention to step down once he had steered the euro zone's fourth largest economy clear of what many analysts expect will be its deepest slowdown in 50 years.
He was expected to step down in 2010 or 2011, making way for a predecessor to manage Spain's economic recovery ahead of its 2012 national election.
Speculation Solbes' departure could be sooner surfaced in early December after Zapatero said he planned to create a separate sports ministry, sparking rumours of an early 2009 cabinet reshuffle.
Newspapers reported poor communication and lack of coordination between Solbes and Zapatero after the prime minister launched stimulus measures, such as a 400 euro-per person income tax rebate, which his economy minister judged ineffective.
Zapatero kept rolling out stimulus plans after Solbes said the government had exhausted room for discretional spending.
Among names that appeared as possible replacements for Solbes were his deputy, Economy Secretary David Vegara, European Union economic and monetary affairs commissioner Joaquin Almunia and Industry Minister Miguel Sebastian.
One economist close to Solbes said the economy minister talked openly of his possible departure on Tuesday to see Zapatero's reaction and win his backing.
"It was a challenge to Zapatero to see what the prime minister's response would be," said the economist.
Based on Zapatero's positive response, Solbes is likely to extend his stay in the economy ministry, he said.
"He will stay on, at least until he sees an improvement in the economy," said the economist, who asked not to be named.
(Additional reporting by Manuel Maria Ruiz; Editing by Paul Day/Victoria Main)