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8/25/14

France: French government collapses after row over economic policy

France has been thrown into fresh crisis today after President Francois Hollande asked his prime minister to form a new government.

The president ordered Prime Minister Manuel Valls to form a new cabinet “consistent with the direction he has set for the country,” the presidency said in a statement.

It did not give any reasons, but the move comes after Economy Minister Arnaud Montebourg spent his weekend bad-mouthing the country’s economic direction and ally Germany in a much-criticised show of insubordination.

The Local reports that Hollande and Prime Minister Manuel Valls had been under pressure after Montebourg and Education Minister Benoit Hamon separately criticised the government’s obsession with reducing deficit instead of pursuing policies to encourage growth.

While Valls himself has not reacted, his entourage said yesterday that Montebourg had crossed a line. It is expected that the new government will be named tomorrow.

Read more: French government collapses after row over economic policy

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