By Alexandra Ulmer and Andrew Cawthorne
CARACAS (Reuters) - Venezuelan President Nicolas Maduro named two university academics to major economic posts in a Cabinet reshuffle on Wednesday that came as a showdown intensified between his government and a new opposition-led legislature.
In a lengthy speech to the nation, the socialist leader named Rodolfo Medina as finance minister and Luis Salas to head a new ministry for economic productivity.
He also ratified Eulogio Del Pino as head of state oil company PDVSA and oil minister.
"I have decided to create this team so right now they start a new dynamic of work with the people, of permanent actions to confront the grave situation Venezuelans face," Maduro said.
Recession-hit Venezuela has the highest inflation in the world and is suffering widespread shortages of basic products.
The ruling Socialists blame that on the oil price plunge and an "economic war" by its foes, but opponents say 17 years of dysfunctional hardline policies including price and currency controls are to blame.
"We are facing a new economic emergency, and in coming days I will present a rescue plan," Maduro added.
Maduro also replaced Jorge Arreaza, son-in-law of his predecessor, Hugo Chavez, as executive vice president with state governor and Socialist Party stalwart Aristobulo Isturiz.
Arreaza was made minister for universities, science and technology, plus a vice-president for social matters.
Foreign Minister Delcy Rodriguez was ratified in her post.
Earlier in the day, Venezuela's opposition defied a Supreme Court ruling and swore into the new congress three lawmakers barred from taking their seats.
The opposition won a two-thirds' super-majority in legislative elections in December, but the court granted injunctions against the three, all from the jungle state of Amazonas, after allegations of irregularities.
"It was a violation of our human rights," one of the three, Romel Guzamana, said after being sworn in.
The government said the National Assembly had breached the constitution. "Those people are not legislators ... a conflict of powers is coming," said former assembly President Diosdado Cabello, who is the ruling Socialist Party's No. 2.
The case of the three is crucial because they tip the opposition over the two-thirds line in the assembly of 167 members. That majority gives the opposition expanded powers, including the capacity to fire Maduro's Cabinet ministers.
While the opposition is pushing for a recall referendum to oust Maduro this year - as allowed halfway through his term under the constitution if nearly 4 million voters request it - the government is playing hard ball after its December loss.
Before the new National Assembly convened, the government eliminated its control over the central bank. Also, 13 new Supreme Court justices were sworn in by the outgoing assembly in December, which critics slammed as a last-minute court-packing scheme by the Socialist Party.
(Additional reporting by Corina Pons, Girish Gupta, Eyanir Chinea and Brian Ellsworth; Editing by Peter Cooney)