Cabinet economy rift sinks French government

French president Francois Hollande dissolved the government yesterday 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 today.

France has had effectively no economic growth this year, unemployment is around 10% and Hollande’s approval ratings are sunk in the teens. The country is under pressure from the 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 kickstart French growth.