Little-known Viorica Dancila is the EU member's third prime minister in seven months, replacing Mihai Tudose following a power struggle within her Social Democrats (PSD) party.
The 54-year-old pledged to continue her left wing party's programme of increasing pensions and public service salaries, and to strengthen ties with the EU.
But she did not address concerns expressed by Brussels about controversial judicial reforms, passed in December by the PSD-led coalition.
The changes will curb both the powers of Romania's anti- corruption investigative body (DNA), and the right of the president to block the appointment of senior prosecutors nominated by the government.
The head of DNA, Laura Codruta Kovesi, told news agency Agerpres on Monday that prosecutors would no longer be able to investigate senior officials if the reforms came into effect.
The centre-right President Klaus Iohannis, a vocal critic of the PSD, has not yet announced whether he will sign off on the reforms.
Today, he blasted the coalition for changing the laws of justice "ignoring the arguments of the judicial system and criticism coming from foreign partners".
"There is a red line that the government cannot cross. Affecting the independence of justice is unacceptable," he said after swearing in the new ministers.
In a joint statement last week, European Commission chief Jean-Claude Juncker and his deputy Frans Timmermans warned Romania "against backtracking", adding that they would look carefully at the amendments "to determine the impact on efforts to safeguard the independence of the judiciary and combat corruption".
But the PSD has defended its reform plans, insisting it was committed to the rule of law and tackling corruption and saying it was open to "real and concrete dialogue".
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