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| French PM Manuel Valls resigns amid economy row | |
| (35 minutes later) | |
| 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". | |
| 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 France's 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 Germany's conservatives". | |
| On Saturday, he told Le Monde newspaper that Germany was trapped in an austerity policy that it imposed across Europe". | |
| Manuel Valls became prime minister in March after a poor performance by President Hollande's Socialist party in local elections. | |
| Earlier this month, the government admitted it would be impossible to reach a previous growth forecast of 1%. | |
| Mr Montebourg told French radio shortly before Mr Valls announced the government's resignation that he had no regrets about his remarks, "first of all because there's no anger". | |
| There was no debate about authority, he told Europe 1 radio, but a "debate about economic direction". |