France protests escalate into violence as euro weakens amid European unrest

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France’s weekend protests turned violent, with over 2,300 arrests and 1,000 injuries reported. The Fear & Greed Index reflects heightened market anxiety as unrest spreads across Europe. Cities such as Limoges and Lyon saw public buildings set on fire, with Macron urging calm. The euro weakened against the dollar amid rising tensions. Similar protests over fuel prices and living costs have also occurred in Italy, Belgium, and Portugal. Traders are advised to monitor altcoins for potential market shifts.

Weekend protests in France escalated into severe street violence, with thousands arrested and hundreds of police and firefighters injured, causing heavy losses to the retail sector. Protests also erupted in Italy, Belgium, and Portugal, where rising fuel prices have fueled widespread anger, intensifying social and market pressures across Europe.

On Sunday evening, French President Macron condemned the weekend violence, stating that it filled France with anger and shame, and called for the swift restoration of order. As stores were looted and public buildings set on fire across multiple cities, France is facing one of its most severe outbreaks of street violence in years.

Macron stated, "What the country needs is order and peace, not further escalation of the situation." He also said that local officials will work together with mayors to determine how to protect public buildings and commercial premises, and may prohibit demonstrations if necessary.

According to the latest data released by the French Ministry of Foreign Affairs on Sunday evening, 2,397 people were arrested on Saturday. On that day, more than 500,000 people participated in protests nationwide. The demonstrations initially began as peaceful marches, with participants primarily expressing concerns over poor conditions in schools and hospitals, as well as rising living costs.

The protests escalated into clashes between police and civilians, with acts of vandalism occurring in multiple cities, resulting in approximately 1,000 police officers and firefighters injured. The town hall in Limoges, a historic city in central France, was set on fire, severely damaging the 143-year-old building; a tourist information center in Lyon was also set ablaze.

The clashes in Paris continued into Sunday evening local time, primarily centered around Place de la République and surrounding streets. The day before, the base of the Marianne statue on the square had been covered in graffiti, and a nearby restaurant was broken into and set on fire.

The owner of a tobacco shop told French BFM TV that the robbers entered the store with plastic bags and stole a large quantity of cigarettes. The scale of retail losses over the weekend is also becoming apparent.

Alexandre Bompard, CEO of Carrefour SA and head of the French Federation of Trade and Distribution, said that repairing the damage from the riots would cost “hundreds of millions of euros.” He made the remarks during an interview on LCI television on Sunday, noting that approximately 1,500 retailers were affected, with around 20 Carrefour supermarkets looted.

Rising cost of living and fiscal pressures intertwine, intensifying political divisions ahead of the election.

This unrest occurred during a politically sensitive period in France. The presidential election is expected to take place in April next year, as Macron’s term draws to a close, while ongoing dissatisfaction persists over issues such as the cost of living, education resources, and public services.

Macron stated that many participants in the protests expressed concerns about the cost of living, particularly fuel prices at gas stations. He believes that this dissatisfaction is one of the reasons behind the riots in several European cities.

However, the demand to increase investment in education and public services conflicts with France’s heavy fiscal burden. The government is under pressure to control its growing high debt, and fiscal conditions have become a concern for investors ahead of the election.

As the election approaches, investors remain cautious about the policy proposals that leading candidates may put forward. Currently, France has no clear path to resolving the crisis. Macron stated that he will begin visiting Gulf countries on Monday and work to "ensure our fuel supply."

The unrest has also intensified divisions among French political parties. Marine Le Pen, the far-right leader leading in opinion polls, accused Jean-Luc Mélenchon, a left-wing radical figure, and his party La France Insoumise (LFI) of inciting violence.

In a video address posted on the social platform X on Sunday, Le Pen said: “Our country is caught between violence and incompetence, even held hostage.” She accused certain political forces of downplaying the severity of violence and targeting police and state institutions.

Le Pen also criticized La France Insoumise and its associated political forces, drawing parallels between the current situation and revolutions in South America and conflicts in the Middle East. She linked LFI’s political wing to anti-fascist organizations and accused these forces of enabling violence.

Mélenchon blamed police provocation for part of the unrest, writing on X: "Those who share our common struggle should not engage in looting or vandalism."

French Prime Minister Sébastien Lecornu was also drawn into the dispute with Mélenchon on X, as major cities including Paris and Bordeaux experienced a series of store robberies.

Édouard Philippe, who served as Prime Minister in Macron’s government and is currently a presidential candidate, said that French citizens should have confidence in the state’s ability to protect private property. During an interview on BFM TV on Sunday, he said, “What is being tested here is democracy itself.”

The mayors of Paris, Marseille, and Lyon have requested a meeting with the Prime Minister. Marseille Mayor Benoît Payan noted that the public safety response plan established by the state on Saturday was inadequate.

Images of the fire at Limoges City Hall also drew attention from U.S. politicians. Vice President Vance linked the events in France to immigration issues and insufficient immigrant integration, stating on X that he hopes France can stop the violence before more landmark buildings are burned.

President Trump blamed the unrest on immigrants on his Truth Social platform, without providing any evidence. He wrote: “Donald J. Trump: France is burning! Immigrants from a completely different world, people filled with hatred…”

Protests have also emerged in Italy, Belgium, and Portugal.

France is not the only center of these European protests. Demonstrations have also taken place in Italy, Belgium, and Portugal, where issues such as the cost of living, wages, housing affordability, and public service funding have become key concerns for protesters.

Thousands of people took to the streets of Milan, Turin, and Bologna over the Italian weekend, with some demonstrations turning violent. In Rome, another protest, organized by labor unions, voiced concerns over wages and the cost of living; truck drivers and farmers in southern Italy also protested against high fuel prices and other costs.

Approximately 5,000 people participated in the demonstration in Milan. Around Piazza del Duomo, at the heart of the financial district, a group of mostly young rioters wearing masks clashed with police, throwing cobblestones and firecrackers and looting stores amid the chaos.

Carlo Varesi, the 65-year-old owner of a nearby bar, has run the establishment for many years. He said, “I’ve seen many protests—some more violent than others—but I’ve never seen anything like this.”

The unrest in Milan began on Sunday afternoon and escalated further that day, with groups of young people looting multiple stores in the city center. According to Italian media, Prime Minister Giorgia Meloni has scheduled an emergency meeting for Monday.

Meloni said on Saturday: "Protests are a right, but setting fire to our cities is not."

Protests also took place in Belgium on Saturday, the latest in a series of demonstrations in the country over recent weeks. According to the French-language Belgian newspaper Le Soir, around 150 people were arrested.

Belgian unions have been organizing strikes to protest proposed measures under discussion by the government. The government is working to gain support from its five-party ruling coalition for the budget plan this month. Student protests have also taken place in Brussels and the southern city of Liège, with demonstrators opposing cuts to education funding.

Protests in Portugal focused on housing and the cost of living. On Sunday, hundreds of tents appeared in Rossio Square in Lisbon and Praça de D. João I in Porto, with protesters stating their intention to continue the action indefinitely.

Portuguese public broadcaster RTP reported that no police intervention occurred that evening. Earlier this week, police had cleared a protest camp set up by housing activists in Porto, with organizers reporting that around 40 people were injured.

Subsequently, the protests expanded into a nationwide movement, demanding lower unaffordable rents, higher stagnant wages, and measures to address rising food and fuel prices. On October 7, Álvaro Santos Pereira, Governor of the Bank of Portugal, stated that Portugal’s response to the housing crisis has been too slow and lacks the necessary urgency.

Street clashes further spilled over into financial markets. During early European trading on Monday, the euro weakened against major currencies, falling more than 0.5% to 1.1180 against the U.S. dollar before recovering slightly.

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