Prime Minister Sébastien Lecornu reported a 'calm' night in France due to curfews imposed in several cities, including Paris and Lyon, following violent protests and looting over living costs and public services. The unrest is exacerbated by a divided parliament and rising government borrowing costs, which could lead to a fiscal crisis.
Lecornu indicated that local officials may impose additional curfews as needed. Criticism is mounting against President Emmanuel Macron for prioritizing a three-day tour of the Middle East amid the riots, with commentators questioning his leadership during this turbulent time.
The protests have resulted in significant damage, with over 3,000 shops affected, leading to a loss of public trust in the government's ability to maintain order. Fabrice Le Saché from business group MEDEF expressed concerns about the implications for the economy, noting that the current unrest surpasses previous movements like the Yellow Vests.
In response, the government plans to establish a support fund for affected businesses and expedite insurance assessments. The unrest has negatively impacted French financial markets, with bonds, stocks, and the euro experiencing sell-offs as skepticism grows regarding the government's fiscal management and its ability to reduce the deficit from 5.4% to 5% of GDP by 2027