French stocks and government bonds fell on Monday after a weekend of violent protests over living costs and deteriorating school conditions, adding pressure to a government already struggling with weak growth, high debt and a difficult budget process.
The protests began as largely peaceful marches but escalated on Saturday across Paris, Lyon, Marseille, Limoges and other cities. Police used tear gas and water cannon, while masked groups set fires, looted shops and attacked public buildings. Limoges’ city hall was badly damaged by fire, a tourist office in Lyon was looted and set alight, and protesters briefly entered Marseille’s city hall.
President Emmanuel Macron rejected Nuñez’s resignation and ordered a review of policing failures; Prime Minister Sébastien Lecornu instructed prefects to prepare limited, localized curfews.
The unrest intensified investor concern over France’s fiscal position and its ability to pass spending restraints. The spread over equivalent German debt widened, signaling a larger premium for holding French bonds.
The euro declined to about $1.
The protests have been linked to rising fuel, food and energy costs, declining purchasing power and anger over public services. With a presidential election due in six months, the violence has made the political obstacles to deficit reduction more visible to markets.
Separate industrial action is also threatening Britain’s energy system. More than 160 Apache offshore workers are scheduled to strike from 6 a. On October 22 after rejecting a pay offer. The dispute covers seven assets connected to the Forties and Beryl fields, and the union says a stoppage could halt the Forties Pipeline System, which handles about 29% of UK oil and 30% of UK gas.