The French Prime Minister Manuel Valls has met with President Francois Hollande to tender the resignation of his government
It follows a long-running Cabinet row over economic policies.
The new composition of the French government will be announced tomorrow.
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The move comes a day after leftist Economy Minister Arnaud Montebourg criticised the economic policies of the government.
He also questioned what he called Germany's "obsession" with budgetary rigour.
Elaine Cobb from CBS News in Paris told Newstalk Breakfast that Mr Hollande has supported Mr Valls, by asking him to reform the government.