France Faces $1.8 Billion in Damage from Violent Protests as Military Deployed

Last weekend, France experienced widespread violent protests and looting, prompting the government to impose partial curfews in major cities, including Paris, for two consecutive nights starting October 20. In preparation for the anticipated 'Act 2' protests on the 24th, the French government plans to deploy a significant security presence, including military personnel.
French Prime Minister Sébastien Lecornu announced via X (formerly Twitter) that the curfews imposed in specific areas overnight helped restore order. He indicated that new curfews would be implemented where necessary that evening. The curfews will be determined in consultation with local officials.

The Paris police announced that a second curfew would begin at 11 p.m. in areas heavily affected by violence, including Place de la République and the Les Halles shopping district, stating that the measures would remain in place until public safety is restored.

Other major cities in France also reinforced their curfews. In Lyon, a curfew was extended from 9 p.m. to 6 a.m. in urban areas, while Marseille introduced a nighttime curfew for unaccompanied minors. Bordeaux and Nice announced they would continue their curfews for the coming days.

According to AFP, police helicopters patrolled the skies over Paris, shining lights to monitor the situation. One resident expressed fear, saying, "Hearing the helicopter at 1 a.m. is suffocating. It feels like something out of a TV show or war movie."

Meanwhile, there has been a movement to show solidarity with affected businesses. In Lyon, despite a ban on gatherings, around 500 citizens gathered with candles in front of a tourism office that suffered fire damage during the weekend protests to express support for looted merchants.
Organizers of the 'Yellow Vest' movement and student groups have announced a second round of protests on the 24th, prompting authorities to declare a strong response.

Prime Minister Lecornu acknowledged shortcomings in initial responses during a parliamentary session but stated that police forces would be deployed in large numbers for the upcoming protests. He reiterated claims that far-left groups were behind the violence.

Interior Minister Laurent Nuñez announced that military personnel from the Sentinelle operation would be deployed as a substitute for internal security forces, allowing police and gendarmes to focus on maintaining order.

Additionally, Paris police have temporarily banned the possession of gas canisters and fireworks, and prohibited protective gear such as helmets in areas near high schools and universities, tightening security measures.
Political divisions, rising public debt, and concerns over budget deficits have compounded financial market anxieties, exacerbated by the recent violence.

On October 20, the yield on France's 10-year bonds rose to 4.96%, with the spread between French and German 10-year bond yields widening to 1.54 percentage points. This level is close to the peak recorded earlier this month when financial instability was at its highest (bond yield at 4.9937%, spread at 1.59 percentage points).
The economic impact of the violence is escalating. According to Bloomberg, Morningstar DBRS estimates the financial losses from the unrest to be between €1 billion and €1.2 billion (approximately $1.5 billion to $1.8 billion).

The Paris Merchants Association issued a statement saying, "It is unacceptable that we have to hire private security firms to ensure the safety of our establishments. Paris and our neighborhoods represent the image of France, and such incidents tarnish our country's reputation."

In response, Economy Minister Roland Lescure held discussions with business groups and the finance and insurance sectors to announce recovery measures. The French government will implement immediate support for affected businesses, including interest-free loans of up to €50,000 (approximately $75,000), deferrals on overdue taxes and social security contributions, and assistance for affected workers.