France’s economy minister says he and two colleagues are leaving their posts amid a bitter row over economic policy.
Arnaud Montebourg had publicly urged President Hollande’s government to end austerity policies and focus on growth.
He was backed by Education Minister Benoit Hamon and Culture Minister Aurelie Filippetti.
Prime Minister Manuel Valls accused Mr Montebourg of crossing “a yellow line” and announced the resignation of his entire cabinet.
The move had apparently been agreed with President Francois Hollande, who immediately asked him to form a new government on Tuesday “consistent with the direction” he had set for the country.
France is struggling with high unemployment and low growth and President Francois Hollande’s popularity is the lowest for a president in more than 50 years.