French President Francois Hollande on Tuesday replaced leftist economy minister Arnaud Montebourg with ex-banker Emmanuel Macron as part of a cabinet reshuffle aimed at reviving the country's economy.

The revamp comes as Europe tries to decide on the maximum budgetary rigor to implement and help the region recover from its financial downturn. The reshuflling is the second time Hollande shook the government up in two years, and this could also be his last shot of succeeding as the nation's president, Reuters said.

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Montebourg was booted from his seat on Monday after he verbalized his opposition against Germany's austerity measures. Macron, 36, was one of Hollande's economic advisers and served as the French businessmen's source of information from the presidential palace.

Hollande launched the new cabinet weeks before France is set to hold serious talks with European Union (EU) members about a 2015 budget that is expected to go against Brussels' expectations on deficit cuts. The new ministers would implement the French president's plan involving business-related measures aimed at promoting growth, sources said.

Although Hollande's plan includes corporate tax cuts worth €40 billion (US$52.74 billion), it also promises to stick to the budget rules set by the EU.

Meanwhile, Finance Minister Michel Sapin retained his post as he reassured EU members that France will be able to heal its economy despite repeated failures in lowering its deficit to the level recommended by the EU.

Education minister Benoit Hamon and Aurelie Filippetti, both leftists, were ejected from their posts and replaced by ministers committed to Hollande's Socialist government.

On Monday, Prime Minister Manuel Valls tendered his government's resignation after Hollande said Montebourg went beyond his limits when he attacked Germany's austerity plans for the euro zone.

Some regions outside France started supporting Montebourg's call to stimulate recovery through fiscal loosening. However, others maintain that France needs to cut state spending to boost economic growth.

TagsFrancois Hollande, Arnaud Montebourg, Emmanuel Macron, Reuters, EU, Michel Sapin, Benoit Hamon, Aurelie Filippetti, Manuel Valls, Germany