France Faces Protest-Related Economic Impact
France is facing high economic costs due to the wave of violent protests that began on October 17. Approximately 3,000 businesses have been affected, incurring damages totaling between 1 and 1.2 billion euros. These losses include direct damages, work stoppages, and reductions in revenue. The protests have also led to an increase in the yields on ten-year French bonds by 7.8 basis points, and the spread over German bonds has risen to 145 basis points. Meanwhile, the CAC 40 index declined by 1.2%, all indicating mounting pressure on the economy and rising financing costs. The French government faces challenges in balancing efforts to contain social anger through increased spending, as public debt continues to rise, expected to surpass 118% of GDP by 2026. Financial deficit projections for 2025 anticipate an increase to 5.1% of GDP, complicating the financing of social packages and threatening the tourism sector, which achieved record revenue of 77.5 billion euros in 2025.
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