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Monday, 25 August 2014

French goverment resigns amid rancor over German austerity pressure


The French government has resigned despite being formed just 4 months ago. They quit after ministers slammed President Francois Hollande's plans for taxation and cuts, while also being critical of Germany’s austerity program.

The statement published on Monday said the new office would be formed on Tuesday and would be in the "direction he (the president) has defined for our country."
Following the 2008 financial crisis, Germany has taken the lead to try and resurrect the EU’s economy. This has been marked by cutbacks and taxation, which have not proved to be universally popular within the eurozone. Economics Minister, Arnaud Montebourg, an outspoken critic of Germany, believes that country has hindered France’s development. 

Montebourg said it was time to resist Germany's "obsession" with austerity and work out some alternative ways to promote household consumption. He said that measures that had been introduced since the financial crisis were not doing anything to help the country’s economy grow. He also blamed Germany for factory closures in France. 

"You have to raise your voice. Germany is trapped in an austerity policy that it imposed across Europe," the Socialist minister said in the interview with the French newspaper Le Monde on Saturday. 

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