By Dina Kyriakidou

ATHENS, Sept 7 (Reuters) - Greek Prime Minister GeorgePapandreou reshuffled his cabinet early on Tuesday to try tobetter deal with the debt crisis and signalled he would stay thefiscal course by leaving his finance minister unchanged.

Less than a year since coming to power, Papandreou switchedseveral ministers around in an effort to improve ministriesdealing with economic growth and chronic problems such as healthand social security, but brought few new faces to his cabinet.

"The new cabinet will be sworn in at noon," said governmentspokesman George Petalotis, announcing the changes at 1:35 am(2235 GMT on Monday) after hours of deliberations.

Municipal elections across the country on Nov. 7 had forcedsome changes as three deputy ministers will run for local officeand must be replaced. Papandreou took advantage of the vote toconduct a wider reshuffle.

The changes are not expected to affect spending cuts and taxhikes required in a 110 billion euro ($140 billion) IMF/EUbailout aimed at rescuing Greece from bankruptcy, with FinanceMinister George Papaconstantinou staying in place.

But they are aimed at boosting other key economic and socialpolicy areas that are seen as lagging behind and at appeasing apublic angry with tough austerity measures.

MUSICAL CHAIRS

Economy Minister Louka Katseli will be moved the Labourportfolio while Labour Minister Andreas Loverdos will go to theHealth Ministry. Agriculture Minister Katerina Batzeli isreplaced with party stalwart Costas Skandalidis. Police MinisterMihalis Chrysochoidis gets the Economy portfolio.

"I am not sure these changes to ministries are productive,coming in less than 12 months," said Costas Ifantis, politicalscientist at the University of Athens.

Analysts said Papandreou was pulled by opposing forces. Onone side the business world wanted policy continuity and asubstantial reshuffle so early in his four-year term was sure tobe interpreted by political enemies as a weakness.

"It took just 11 months and one long night ... for the PrimeMinister to admit his government's failure," said mainconservative opposition New Democracy party spokesman PanosPanagiotopoulos.

But polls also show the public have been demanding changesand several ministers have been seen as dragging their feet.

After plunging into its first recession in 16 years,Greece's economy is expected to shrink 4 percent this year, withsalary cuts and tax hikes stifling consumption. Unemployment andinflation have soared.

The government is anxious for social peace as austeritysinks in after the summer and many analysts predict unrest asGreeks return from holidays to face a tough winter.

People have already taken to the streets, angry at the belttightening measures and impunity for the corrupt politiciansthey hold responsible for the crisis, with protests turningviolent and killing three people in May. According to a GPO polling agency survey last week, 60percent wanted changes in the government but Papandreou stillenjoys more support than his conservative party opponent andmost Greeks feel the measures are necessary.

Papandreou has been criticised for taking months to announcedrastic measures after revealing the budget deficit he inheritedfrom the conservatives would be more than two times bigger thanexpected, triggering a debt crisis that shook internationalmarkets and the euro zone.

But tough measures are starting to work, with drastic statespending cuts already reducing deficits and pleasinginternational lenders.