Hollande asks Valls to form new French cabinet -UPDATED

French President Francois Hollande has asked the French Prime Minister Manuel Valls to form a new cabinet as he submitted the resignation of his four-month working government

Hollande asks Valls to form new French cabinet -UPDATED

World Bulletin/News Desk

French Prime Minister Manuel Valls presented his government's resignation on Monday, a day after Economy Minister Arnaud Montebourg called for new economic policies and questioned neighbour Germany's "obsession" with budgetary rigour.

Valls was asked by President Francois Hollande to form a new team only four months ago but has continually had to reconcile policy differences between leftists such as Montebourg and more centrist members of his Socialist-led government.

Hollande's office said in a statement a new government would be formed on Tuesday in line with the "direction he (the president) has defined for our country."

Only after 147 days into the job, Valls's new government cracked down under the pressure from critics on its economic policies.

Montebourg at the weekend said deficit-reduction measures carried out since the 2008 financial crisis were crippling the euro zone's economies and urged governments to change course or lose their voters to populist and extremist parties.

Montebourg criticized Germany's austerity measures and warned France it would no longer "be pushed around" by the EU's economic powerhouse.

Finance Minister Michel Sapin acknowledged this month that weak growth would mean France missing its deficit-reduction target for this year but stressed the government would continue cutting the deficit "at an appropriate pace".

The weakness of the economy was a major factor in Valls seeing his approval rating drop to a new low of 36 percent this month, while Hollande remained the most unpopular president in more than half a century, an Ifop poll showed on Sunday.

Valls was appointed to lead the government in a cabinet reshuffle in March, after the ruling Socialists suffered a bruising defeat in local elections.

The French government’s collapse underlines the mounting political and economic pressures on Hollande and Valls's government after new figures released by the national statistics institute showed the French economy had come to a halt, displaying zero growth for the second consecutive quarter.

 

Last Mod: 25 Ağustos 2014, 12:10
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