Riots in France Have Already Cost Businesses More Than $1 Billion
“Just weeks after hugely disruptive protests and strikes over pension reforms in France finally died down, businesses in the country are grappling with the fallout from a week of rioting,” reports CNN.
According to the French business association, MEDEF, the riots, sparked by the fatal shooting of a teenager by a police officer, have caused more than €1 billion ($1.1 billion) worth of damage, with nearly 400 bank branches and 500 corner shops attacked, says French Finance Minister Bruno Le Maire.
Le Maire downplayed the overall impact on the French economy, stating, “The riots will not have a deep impact on French growth.”
The unrest erupted after the fatal shooting of 17-year-old Nahel Merzouk during a traffic stop in a Paris suburb, leading to protests across France, with demonstrators expressing their anger over the policing of marginalized communities and questioning whether race played a role in Merzouk’s death.
French President Emmanuel Macron reassured mayors of affected municipalities, promising his “total support,” while stating that he believed the “peak” of the violence had passed.
To aid affected businesses, taxes and social security contributions will be deferred or canceled, and the time to make insurance claims extended to 30 days.
Despite the estimated damages of €1 billion, DBRS Morningstar, a credit ratings agency, believes total insured losses for the French insurance industry will remain below that mark, indicating that many firms may not be fully compensated for their losses.
Foreign tourists have already canceled 20-25% of planned trips to Paris, impacting the French economy as the disruptions deter visitors.
Survey data published last week indicated a decline in French output for the first time this year, with the services sector reversing, and manufacturing experiencing a deepened downturn, adding to the economic challenges faced by the country.
