Rome, Sunday

ITALIAN Prime Minister Giuliano Amato reshuffled three key Cabinet

posts today as he struggled to keep his government afloat after a series

of bribery scandals that has decimated the Italian political class.

The reshuffle, after four hours of argument among Ministers on how to

prop up the eight-month-old Government, was a rapid response to the

turmoil created by the resignation of the Finance and Health Ministers

on Friday.

Socialist Franco Reviglio, previously Budget Minister, was made

Finance Ministerat a special Cabinet meeting. Veteran Christian Democrat

Beniamino Andreatta will take over Reviglio's old job.

Amato hurried from his office to the nearby Quirinale palace to

present his plans to President Oscar Luigi Scalfaro, who later signed

decrees approving the nominations.

Amato has kept his word about having the Government back to strength

before the markets open tomorrow.

Friday's resignation of Finance Minister Giovanni Goria and Health

Minister Francesco De Lorenzo, both tainted by corruption scandals,

hammered the lira on foreign exchanges.

The Government, like most before it, is based on an uneasy alliance

between Christian Democrats and Socialists. It has a majority of only 16

in the 630-seat lower house, but Amato is expected to call a fresh

confidence vote in the next few days to prove he still has parliamentary

approval.

Amato's Socialist Party is the focus of a public works corruption

inquiry centred on Milan, the country's financial hub.

The scandal has forced former Prime Minister and Amato supporter

Bettino Craxi to resign as head of the party, and cost Socialist Justice

Minister Claudio Martelli his job two weeks ago.

The reshuffle came under almost immediate fire from former president

Francesco Cossiga, who branded the new administration as a Government of

national hypocrisy.