ANKARA (Reuters) - Turkey's Prime Minister Tayyip Erdogan announced his new cabinet on Wednesday, retaining Mehmet Simsek as Finance Minister and appointing Zafer Caglayan as new economy minister. Ali Babacan was retained as one of the four deputy prime ministers. In the previous government he was responsible for the economy but Erdogan did not say what Babacan's duties would be in the new cabinet. As expected, Ahmet Davutoglu stays as Foreign Minister, while Egemen Bagis, Turkey's chief negotiator for EU membership, was named to head the newly created European Union ministry.