French PM Manuel Valls has submitted the governments resignation to President François Hollande and has been asked to form a new cabinet. The government was badly shaken on Sunday by criticism over its handling of the economy by economy minister Arnaud Montebourg. Moments after Mr Vallss 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 Frances growth. Mr Montebourg told a meeting of Socialists in eastern France that the time had come to put up a just and sane resistance to the excessive obsessions of Germanys conservatives.
