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French government dissolves over economic policy

By LORI HINNANTSYLVIE CORBET
Published August 25, 2014 5:06pm ET
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French government dissolves over economic policy
FILE- This April 10, 2014, shows French prime minister Manuel Valls, right, and Economy Minister Arnaud Montebourg during a visit to French defense and electronic company Thales in Gennevilliers, outside Paris, France. French President Francois Hollande is dissolving the government after an open feud in his Cabinet over the country’s economy. Prime Minister Manuel Valls offered up his Socialist government’s resignation Monday after accusing his economy minister, Arnaud Montebourg , of crossing a line with open criticism of the government’s policies.(AP Photo/Christophe Ena, File) | Christophe Ena

PARIS (AP) — President Francois Hollande is weighing his options after dissolving the government on Monday over open feuding in the Cabinet about how much cutting — or spending — will revive the country’s stagnant economy.

Hollande is to announce a new government on Tuesday. The debate among French Socialists mirrors one taking place across Europe on whether to pursue a German-led model of fiscal austerity or use more government spending to spur growth.

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France Francois Hollande Socialism World