Venezuelan President Shakes Up His Cabinet

President Hugo Chavez replaced four Cabinet members Sunday in a shake-up aimed at yielding to opposition demands and restoring stability after a failed coup.

Chavez sacked Planning Minister Jorge Giordani, whose leftist policies were largely blamed for eroding confidence in Venezuela’s oil-dependent economy. Interior Minister Ramon Rodriguez Chacin, whose reported ties with Colombian Marxist rebels had upset the armed forces, also was fired.

Chavez, ousted April 12 and back in power two days later, made his decisions as part of an effort to subdue growing civilian and military opposition to his rule.

Chavez replaced Giordani with leftist economist Felipe Perez and named another leftist economist, Tobias Nobrega, as finance minister, the sixth person to hold the post since Chavez’s 1998 election.

Perez and Nobrega are considered more moderate than Giordani. Last week, investment banking house Bear Stearns said Perez’s appointment would “send a positive signal to the markets.”

Chavez replaced Rodriguez with Diosdado Cabello, currently vice president. Chavez announced last week that Jose Vicente Rangel would be shifted from defense minister to vice president. The new defense minister, Chavez announced, is army Gen. Lucas Romero Rincon, Venezuela’s highest-ranking military officer.

The general’s appointment comes despite his role in the failed coup. Romero, who is inspector general of the armed forces, joined other top generals in pressuring Chavez to resign after a bloody anti-government demonstration.

After Chavez’s return to power, the general explained that he had urged the president to give in to rebellious military officers to avoid sparking a civil war.

Chavez said he has accepted the explanation.