Keeping an election promise, Sarkozy reduced the number of ministers by half by comparison with the previous government.
By appointing seven women as ministers, the new president has sought to end the traditional male domination of French politics.
The cabinet was named a day after Sarkozy named Francois Fillon as prime minister.
Portfolios
Alain Juppe, a former prime minister, was named as number two at the head of a newly-formed environment, sustainable development, energy and transport "super-ministry".
Bernard Kouchner, the former Socialist health minister and human-rights activist, was named foreign minister, an appointment that showed Sarkozy's desire to reach out across the political divide.
Michele Alliot-Marie was switched to the interior ministry from defence with the centrist Herve Morin assuming her old job.
Jean-Louis Borloo, the outgoing employment minister, heads up a new economic strategy ministry, and Eric Woerth heads a new public accounts ministry that will draw up the state budget.
Immigrant face
Another high-profile appointment is Rachida Dati, Sarkozy's election campaign spokeswoman, at the justice ministry. She becomes the first politician of North African origin to hold a top French government post.
Brice Hortefeux, Sarkozy's closest political ally, will take charge of a new immigration and national identity ministry, while Xavier Bertrand will take charge of work, social relations and solidarity ministry.
Other ministers include: Christine Lagarde, the minister of agriculture; Christine Boutin, the minister of social cohesion; Valerie Pecresse, the minister of higher education; Christine Albanel, the culture minister; Roselyne Bachelot, the health, youth and sports minister; and Xavier Darcos, the education minister.