FRANCE'S new Socialist finance minister took office yesterday with the unenviable task of getting public finances into shape for European monetary union after promising to spare voters further economic austerity.

Mr Dominique Strauss Kahn took over a newly merged finance and industry portfolio the same day as the INSEE statistics office released data showing economic growth had been relatively lacklustre in the first quarter of 1997.

The 48 year old, appointed by Prime Minister, Mr Lionel Jospin, on Wednesday and seen by some in the financial markets as a fairly pragmatic and pro European left winger, inherits an economy in the test year for joining a single euro currency.

In a brief handover ceremony at the ministry, he refrained from specifics on policy, saying his aim was to keep "some of the policies which were pursued by our predecessors, which in part seem to us to be going in the right direction".

Some economists say data showing a 0.2 per cent rise in gross domestic product for the first three months of 1997 augurs badly for the full year, although financial market analysts have long been saying a pickup was likely in the latter half of the year.

Mr Strauss Kahn, principal author of Socialist economic policy, will clearly have his hands full.

There was already considerable speculation about the ability of the previous centre right government to meet its objectives on public deficit control.

Mr Strauss Kahn has the additional task of reconciling deficit control requirements which go hand in hand with a commitment to join monetary union in 1999 with an election pledge to promote growth and jobs, and avoid further public spending cutbacks.

The centre right government, ousted in Sunday's parliamentary election, had forecast economic growth of at least 2.3 per cent in 1997.