Civil Unrest Hits France, Raises Security Concerns Among Businesses, Consumers

Civil unrest has rocked France this summer, with the latest bout of violence this month after an annual music festival.

Syringe attacks and riots marred the festival, which marks the summer solstice. Five million people danced and listened to performances on June 21 at the Fête de la Musique. Police arrested more than 370 people, including some for stabbing 145 people with syringes.

“Some victims were taken to the hospital for toxicological tests,” France's Interior Ministry said on June 22. A series of posts on social media called for the targeting of women.

France has experienced youth-driven social unrest from May that has dampened business confidence in Europe's second-largest economy. On May 31, violence erupted in Paris after a soccer match that damaged shops and destroyed private property.

French President Emmanuel Macron described the riots as “unacceptable” and stated that authorities would identify and punish those involved. France's Interior Minister Bruno Retaillleau described the rioters as "barbarians" who took to “the streets of Paris to commit crimes."

Civil Unrest Top Concern for Businesses Globally

Civil unrest has become a top concern for businesses globally, Allianz Commercial analysts wrote on April 9. Over 50% of company respondents ranked civil unrest as their biggest concern, Allianz said.

"Economics by mismanagement, corruption, and continually rising disparity between the ‘rich' and the rest" is driving the unrest, Srdjan Todorovic, Head of Political Violence and Hostile Environment Solutions at Allianz Commercial, said.. "Those in the immediate vicinity of unrest can suffer business interruption losses and material damage," Todorovic added.

The French economy is facing a period of stagnation. GDP growth will remain weak at just 0.6% in 2025 and unemployment will rise to 7.7%.

All major growth engines —consumer spending, investment, government demand, and foreign trade—have stalled, Le Monde noted on June 19.

Household savings remain at historic highs. An INSEE March survey revealed that over 40% of households are saving money and 70% have curbed consumption.

"The French economic situation remained difficult at the end of the second quarter, and economic growth is still very weak," ING Think wrote on June 20. "Domestic consumption remains sluggish, despite the fall in inflation, with households remaining particularly cautious and continuing to save much more than usual.

French Rioters Damage Local Businesses

Rioters on May 31 kicked in doors , smashed window, defaced facades defaced, and looted. In the Paris neighborhoods just off the Champs-Élysées, a hub for tourism and commerce, shards of glass littered the streets.

Burnt-out car after the May 31 Paris riots, Source: Caleb Q. Klubben, ECI

The police had deployed 5,400 officers ahead of the match between Paris Saint-Germain Football Club's (PSG) and Italy's Inter Milan. After the game, police clashed with masked and hooded mobs hurling projectiles, launching fireworks, and attacking first responders.

By the early hours of June 1, police had arrested 559 individuals across France, 491 in Paris. Rioters injured multiple police officers.

"They simply came to the Parc des Princes and the Champs-Élysées to commit atrocities, loot, and attack the police," Paris Police Prefect Laurent Nunez told Le Parisien in a June 2 interview.

French Polls Show Increase in Concerns about Security

French conservative newspaper Le Figaro reported on June 23 that 86% of individuals it polled "believe that the justice system should impose harsher sentences on juvenile offenders." About 91% of respondents said they "believe that insecurity has increased in recent years," the newspaper reported.

"There is a big difference between Paris 20 years ago and Paris today," Hubert Geay, head of grip fittings at the local usGolf shop in Paris, told European Capital Insights (ECI). He and usGolf manager, Thierorey Bonhomme, hired a private security guard with a trained dog to protect their shop.

Others interviewed criticized the police for their failure to prevent the riots.

"What do we have to do to stop it?" Nicolas, a manager at a wine franchise who declined to give his last name, said. "This is not the first time this has happened. It's predictable, and that's the real scandal."

Police Chief Nunez defended the city's security preparations. "We prevented a lot of damage," he said. He pointed to "a societal problem" for the unrest and called on "all stakeholders" to address the issues.

Politicians Call Out Foreigners Rioting

The country's civil unrest has deepened concerns about immigration. Pollster Elabe said on June 11 that only 21% of participants thought Macron would take "effective action against juvenile violence." That compared to 42% trust in Marine Le Pen, leader of the right-wing National Rally (RN) party.

Support for the anti-immigration party, the RN, has increased in recent years. The party won 30 seats in the 2024 European Union Parliament election, compared to Macron's coalition, which won only 13.

"More scenes of riots in Paris," right-wing French politician, writer, and former broadcast political commentator Éric Zemmour said on June 1. "But be careful, you absolutely must not ask the touchy question: where do these people come from? And why are they still here?"

Gilles Platret, Mayor of Chalon-sur-Saône, a town in eastern France, attempted to answer this question.

"After the legitimate celebrations by Parisian fans," others came and "seized the opportunity to create disorder with a political motive," Platret wrote in a June 1 statement. "The Palestinian flag has become the symbol of the rioters, the rallying sign of Islamist gangs determined to defy republican institutions."

Disclaimer:

Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only. 

This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.