French President Francois Hollande asked his prime minister on Monday 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 outspoken Economy Minister Arnaud Montebourg had condemned what he called fiscal "austerity" and attacked euro zone powerhouse Germany's "obsession" with budgetary rigour.
In a terse statement, Hollande's office said Prime Minister Manuel Valls (pic) had handed in his government's resignation, opening the way for a reshuffle just four months after it took office.
"The head of state asked him to form a team that supports the objectives he has set out for the country," the statement said, suggesting Valls would continue trying to revive the euro zone's second largest economy with tax cuts for businesses while slowly reining in its public deficit by trimming spending.
France has lagged other euro zone economies in emerging from a recent slowdown, fuelling frustration over Hollande's leadership, both within his Socialist party and further afield.
The new cabinet will be announced on Tuesday and there was no immediate word on who would stay and who would go.
NOTE: PAS was making a U-turn in Selangor, forcing PKR and DAP to take another look at the plan to oust Mentri Besar Khalid Ibrahim, who is expected to have an audience with the Sultan tomorrow.