France's Socialist Government Dissolves in Internal Feud

Image: French President Francois Hollande delivers a speech on the Ile de Sein, an island located near the Pointe-du-Raz, off the Brittany coast
French President Francois Hollande delivers a speech in the rain on the Ile de Sein, an island located near the Pointe-du-Raz, off the Brittany coast, August 25, 2014. Earlier in the day, President Hollande asked his prime minister to form a new government, looking to impose his will on the cabinet after rebel leftist ministers had called for an economic policy U-turn. The surprise move came the day after the outspoken Economy Minister had condemned what he called fiscal "austerity" and attacked euro zone powerhouse Germany's "obsession" with budgetary rigour. REUTERS/Philippe Wojazer (FRANCE - Tags: POLITICS)PHILIPPE WOJAZER / Reuters

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PARIS - French President Francois Hollande dissolved the government on Monday after open feuding among his Cabinet over the country's stagnant economy. Prime Minister Manuel Valls offered up his Socialist government's resignation after accusing France's outspoken economy minister of crossing a line with his blunt criticism of the government's policies. Hollande accepted the resignation and ordered Valls to form a new government by Tuesday.

France has had effectively no economic growth this year, unemployment is hovering around 10 percent and Hollande's approval ratings are sunk in the teens. The country is under pressure from the 28-nation European Union to get its finances in order, but Economy Minister Arnaud Montebourg has questioned whether the austerity tack pressed by the EU will really kick start French growth. Hollande's promises to cut taxes and make it easier for businesses to open and operate have stalled, in large part because of the divisions among his Socialist party.

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- The Associated Press

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