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French PM Manuel Valls resigns over economy row

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_77152442_023618814-1French Prime Minister Manuel Valls has submitted the government's resignation to President Francois Hollande and has been asked to form a new cabinet.

The government was badly shaken on Sunday (24 August) by criticism over its handling of the economy by Economy Minister Arnaud Montebourg.

Moments after Valls's resignation, Hollande issued a statement.

He asked Valls to set up a new cabinet "consistent with the direction [Hollande] has set for the country".

The prime minister had accused Montebourg of "crossing a yellow line" after the economy minister had attacked austerity measures which he said were strangling France's growth.

Montebourg told a meeting of Socialists in eastern France that the time had come to put up a "just and sane resistance" to the "excessive obsessions of Germany's conservatives".

 

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