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Monday, 25 August 2014 - 17:02
French Prime Minister resigns amid economy row
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French 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 by criticism over its handling of the economy by economy minister Arnaud Montebourg.

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

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

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

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