What is behind the France protests and what comes next?
TLT•France mobilised 70,000 police and security officers for 220 planned demonstrations as protests over living costs and public services continued. The unrest has weakened confidence and pushed the 10-year government bond yield to 5.14%, its highest since 2002.
1. Protests and response
France faced nationwide protests on Thursday after weeks of unrest over the cost of living and public services. The government mobilised 70,000 police and other security officers to cover 220 planned demonstrations, aiming to avoid a repeat of clashes and looting during protests on October 17.
2. Government measures
The government is considering an increase in the minimum wage, which has stood at €1,478 net per month since June. The CFDT union is calling for an increase of at least €100 a 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 effects
Household confidence fell in October to its lowest level since June 2013, and business confidence has also been dented. The unrest has added to concerns over France’s fiscal outlook; the 10-year benchmark bond yield reached 5.14% last month, its highest since 2002. Polls indicate the protests are benefiting Marine Le Pen and Jean-Luc Melenchon, while Edouard Philippe is trailing them.
