The Yugoslav parliament voted in Milka Planinc as the country's first woman prime minister.
Mrs. Planinc, who succeeds Veselin Djuranovic, has been head of the Communist Party in the second-largest republic of Croatia since 1971.
Mrs. Planinc said her government's major tasks will be to to tackle economic problems, strengthen unity among its nationalities, and continue the country's independent and nonaligned foreign policy.
Yugoslavia has had two years of 40 percent inflation and has a $1.4 billion trade deficit with the West. It announced ambitious economic targets for this year, including the reduction of inflation to 15 percent and of the balance-of-payments deficit to $500 million.