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French PM Fires Cabinet After Anti Austerity Debate

French President Francois Hollande has ordered PM Manuel Valls to form a new government after two senior ministers criticised their austerity policies.

After Mr Valls announced the cabinet’s resignation, Mr Hollande immediately asked him to set up a new one.

Economy minister Arnaud Montebourg and education minister Benoit Hamon are expected to lose their jobs.

They had both called for France to tackle low growth by resisting fiscal discipline imposed by Germany.

Offering his and the government’s resignation, the prime minister said Mr Montebourg, a left-wing MP, had crossed “a yellow line”.

Moments later, the president issued a statement asking him to set up a new government “consistent with the direction [Mr Hollande] has set for the country”.

A French presidential source said Mr Valls’s decision had been a matter of “absolute consensus” between President Hollande and the prime minister.

via BBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza