The appointment was approved by President Sauli Niinisto today after Parliament backed Stubb in a 96-76 vote, with 28 lawmakers absent or abstaining.
The 46-year-old Stubb named three new ministers in the 17-member Cabinet.
The five-party coalition was not expected to make major changes to government policy before national elections in April 2015.
Katainen, who has led the conservative National Coalition Party since 2004, announced in April that he would step down as party leader and prime minister. The party chose Stubb to succeed him on June 14.
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