Siniscalco is an expert on privatisation

The previous minister, Giulio Tremonti, was forced from office earlier this month when he fell out with allies of the coalition.

Mr Berlusconi caused an uproar when he took on the portfolio himself.

Italy, which faces European Commission fines over its deficit, is under pressure to sort out its finances.

The deficit is currently forecast at 3.2% of GDP, above the critical 3% level.

Prime Minister Berlusconi also has to find some way of fulfilling his 2001 election campaign pledge of slashing taxes by 2006.

Mr Siniscalco, 50, has a PhD in economics from Cambridge University in Britain and a diploma in law from Turin University.