Michael Noonan was confirmed as the John Bruton's replacement for John Bruton after sweeping to victory in the Fine Gael leadership election this afternoon.
Deputy Noonan defeated fellow candidate Enda Kenny by 44 votes to 28.
As soon as the announcement was made, the new leader made his first appointment and named Jim Mitchell as his deputy.
Mr Noonan, who will set out his other plans at a news conference this afternoon, said, "Fine Gael is a great party and is at its best when it is energised."
The defeated candidate, Mayo TD Enda Kenny, described the leadership contest as "a very healthy exercise" for a democratic party and pledged his support for the new leader.
"I pledge to him my full and total support and hope everyone will unite in support for his leadership to take the government from Fianna Fail at the next election," said Kenny.