French officials have acknowledged failures in their response and, after weekend cost-of-living protests descended into violence, vandalism, and looting, have introduced tougher security measures while pledging aid to affected businesses.
Marseille banned demonstrations on Monday, and French Prime Minister Sebastien Lecornu instructed local authorities to impose curfews where necessary. Former Prime Minister Gabriel Attal advocated restrictions on social media. "These are criminal acts and robberies, and we absolutely cannot allow this situation to continue," Lecornu told reporters. He blamed the unrest on a "far-left movement," saying it sought to create severe chaos in France and prolong the situation until the presidential election.
On Saturday, more than 500,000 people took part in protests across France. The demonstrations began peacefully, with protesters expressing dissatisfaction over poor conditions in schools and hospitals and the high cost of living, but the situation quickly deteriorated. According to data released by the French Interior Ministry on Sunday evening, approximately 2,397 people were arrested on Saturday. French government bonds and stocks fell, dragging European markets lower. Social media accounts linked to the "Yellow Vest" protests called for continued action this week and planned another protest on Saturday. Protests and other actions could extend even later. Several trade unions have already called for a strike on November 5.
Protests in Italy France was not the only country where weekend protests spiraled out of control. After demonstrations in Milan, Italy, turned into riots and looting, Prime Minister Meloni convened an emergency meeting with advisers on Monday. Protests also occurred in Belgium, Portugal, and Albania.
French Interior Minister Laurent Nunez said intelligence agencies failed to anticipate the scale and violence of the rioters. Speaking on France Inter radio, he said the actual number of protesters reached 550,000, while fewer than 200,000 had been expected. "The measures we took did not match the reality; we underestimated not only the number of participants but also the scale of the rioters, looters, and far-left activists who ultimately caused the march to spiral out of control," he said. Nunez said he had offered his resignation but President Emmanuel Macron refused it. Macron demanded an investigation into the reasons for the intelligence failure.
"What the country needs is order and peace, not escalation," Macron said in a speech on Sunday evening. He said many people who joined the protest marches expressed concerns about the cost of living, especially fuel prices. Macron also said he would visit Gulf countries starting Monday to seek "to safeguard our fuel supply." The aftermath of the weekend riots also reverberated in politics. Amid a tense budget debate and with only six months until the presidential election, this has further exacerbated France's already fragmented political landscape.
"Our country is being squeezed from both sides, one could even say held hostage by violence and inaction," far-right leader Marine Le Pen said in a speech posted on X on Sunday. Le Pen, who leads in the polls, directly accused far-left politician Jean-Luc Melenchon and his La France Insoumise party of inciting violence.
Impact on Tourism French assets fell on Monday as investors assessed the impact of the violence on the country's economic and political outlook. French government bonds underperformed most of their European peers, pushing the spread between French and German 10-year bond yields 8 basis points wider to 145 basis points. According to the head of a hotel industry association, the chaos in Paris has already begun to affect tourism. Christophe Laure, head of UMIH Prestige, which represents four- and five-star hotels, said high-end hotels in Paris have already started seeing cancellations. Laure added that while it is too early to provide specific cancellation data, "Saturday's guests were afraid, they were frightened." French Small and Medium-sized Enterprises Minister Serge Papin said about 3,000 businesses were damaged or looted. Lecornu said some partial unemployment aid funds will be used to help businesses whose premises were damaged.
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