Vienna - Austria's new cabinet, led by Social Democratic Chancellor Werner Faymann and conservative Vice Chancellor Josef Proell, took office Tuesday, forming a coalition that has governed the country off and on for more than 35 years since World War II.

President Heinz Fischer swore in Faymann, 48, Proell, 40, and 16 members of the cabinet that is formed by the Social Democratic Party (SPOe) and the centrist conservative People's Party (OeVP).

"I have pointed out that in these economic circumstances, the formation of a stable government is expedient," Fischer said.

The coalition parties agreed last week to carry out an economic stimulus package worth around 5 billion euros (6.3 billion dollars) for Austria's 8 million inhabitants, including a tax reform, infrastructure projects and family subsidies.

In late September, Austrians voted in early elections after the outgoing coalition between the two parties broke apart in July.

After the vote, in which the Social Democrats emerged as the strongest party with 29 per cent of the votes, followed by the conservatives with 26 per cent, a vocal minority in the People's Party said they would rather go into opposition than continue a so- called centrist "grand coalition."

But given the global economic and financial crises which reached Austria in the autumn, both parties decided against a minority cabinet and against joining forces with Austria's two right-wing parties, the Freedom Party and the Alliance for the Future of Austria. (dpa)