French President François Hollande dissolved the government on Monday and directed Prime Minister Manuel Valls to form a new government by Tuesday.
The president's decision to accept the resignation of the Socialist government came amid major differences within his Cabinet over efforts to stimulate the French economy and cut spending.
France has seen stagnant economic growth this year and unemployment has hovered at around 10 percent.
The president promised to cut taxes and make it easier for businesses to open and operate in hopes of reversing the economic troubles, but efforts have come under attack.
Economy Minister Arnaud Montebourg recently criticized French economic policies as making unemployment worse, and he questioned Germany's budgetary actions.
France has been under pressure by the E.U. to get its financial house in order.