French government resigns after economic woes cause political reshuffle

March 27, 2014 - FILE photo- French President Francois Hollande, left, and French Prime Minister Jean-Marc Ayrault, right, at the Chateau de Versailles, west of Paris. (AP)

France's government has resigned ahead of a reshuffle that comes 24 hours after President Francois Hollande's Socialists suffered losses in nationwide municipal elections seen as a referendum on his leadership.

Disappointment with the Socialists' handling of the economy drove many voters to conservative or anti-immigrant far-right candidates in the elections Sunday.

Hollande is expected to announce a new prime minister Monday evening, after having met with outgoing Prime Minister Jean-Marc Ayrault.

Hollande hopes the reshuffle will boost the government's popularity.