PARIS - French Prime Minister Manuel Valls on Monday submitted the resignation of his government to President Francois Hollande, a day after Economy Minister Arnaud Montebourg leveled his blunt criticism against the government's economic policies.

Hollande accepted the cabinet's resignation and instructed Valls to form a new cabinet "consistent with directions he has set himself for" the country, said the Elysee Palace in a statement.

The new cabinet will be named on Tuesday, said the statement.

Montebourg on Saturday criticised German austerity measures, saying deficit-reduction measures were crippling the euro zone's economies

He warned that France should no longer "be pushed around" by the EU's economic powerhouse. (Xinhua)