Fresh crisis as France's Hollande orders PM to form new cabinet

France was thrown into fresh crisis on Monday after President Francois Hollande told his prime minister to form a new government, following a much-criticised show of insubordination by the country's firebrand economy minister, AFP reports.

Hollande ordered Prime Minister Manuel Valls to form a new cabinet "consistent with the direction he has set for the country", the presidency said in a statement.

It did not give any reasons, but the move came after Economy Minister Arnaud Montebourg bad-mouthed the country's economic direction and ally Germany at the weekend in a move that angered Valls.

While Valls himself has not reacted, his entourage said Sunday that Montebourg had crossed a line.

The presidency said the new cabinet line-up would be announced on Tuesday.