France protests: What is behind the unrest and what comes next?
TLT•France deployed 70,000 security officers for 220 planned demonstrations as protests over living costs and public services continued. Unrest has weakened confidence and pushed the 10-year government bond yield to 5.14%, its highest since 2002.
1. Government response
The protests began in late September with students demonstrating over underfunded schools and widened into a broader challenge to the government. Officials mobilised 70,000 police and other security officers for 220 demonstrations on Thursday, seeking to avoid a repeat of October 17, when protests escalated into clashes and looting.
2. Living costs and services
The government is considering an increase to the net monthly minimum wage, which has stood at €1,478 since June. The CFDT union is calling for at least €100 more per month. For schools, the government has pledged 3,000 qualified teachers, smaller classes, further staff increases next year and €4 billion in renovation loans.
3. Economic and political pressure
Household confidence fell in October to its lowest level since June 2013, while business confidence has also been dented. The unrest has added to concerns about France’s fiscal outlook: the 10-year government bond yield reached 5.14% last month, its highest since 2002. More demonstrations are planned for Saturday, and some unions and housing rights groups have called for pan-European protests from November 20 to 22.
