French Government Dissolved Amid Internal Feud

[Valin]

AP:

LORI HINNANT and SYLVIE CORBE

PARIS — Aug 25, 2014

 

French President Francois Hollande dissolved the government on Monday after open feuding in his Cabinet over the country's stagnant economy.

 

Prime Minister Manuel Valls offered up his Socialist government's resignation after accusing the 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 Tuesday.

 

France has had effectively no economic growth this year, unemployment is hovering around 10 percent, and Hollande's approval ratings are 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 pressed by the EU will kick start French growth.

 

Hollande's promises to cut taxes and make it easier for businesses to open and operate have stalled, meanwhile, in large part because of the divisions among Socialists.

 

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