French Prime Minister resigns amid economy row

France's Prime Minister Manuel Valls has resigned from his post as President François Hollande, a day after a much-criticised show of insubordination by the country's economy minister.

In a statement issued on Monday, Hollande immediately asked Vall to form a new government by Tuesday in line with the "direction he [the president] has defined for our country."

It did not give any reasons, but the move came after the leftist economy minister, Arnaud Montebourg, criticised the country's economic direction and its ally Germany at the weekend in a move that angered Valls.

While Valls himself has not reacted, his aides said on Sunday that Montebourg had crossed a line.

The presidency said the new cabinet lineup would be announced on Tuesday.

France has had effectively no economic growth this year 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 Montebourg has questioned whether the austerity measures suggested by the EU will kickstart French growth.

Montebourg angered the Socialist leadership by saying "a major change in our economy policy" was needed from the president and prime minister.

It countered by saying Montebourg's job was to support the government, not criticise it from within.

"He's not there to start a debate but to put France back on the path of growth," Carlos Da Silva, the Socialist party spokesman, told Le Figaro.