French PM Manuel Valls resigns amid economy row

French PM 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 on Sunday 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".

President François Hollande orders cabinet reshuffle amid economy row

France was thrown into fresh crisis on Monday after President François Hollande asked his prime minister to form a new government following an open feud within his cabinet over the country’s economic direction.

The president ordered Prime Minister Manuel Valls to form a new cabinet "consistent with the direction [Hollande] has set for the country," the presidency said in a statement.

It did not give any reasons, but the move comes after Economy Minister Arnaud Montebourg spent his weekend bad-mouthing the country's economic direction and ally Germany in a much-criticised show of insubordination.