France protests draw 400,000 as unrest threatens Macron’s final months

More than 400,000 demonstrators took to the streets across France on Saturday to protest rising living costs and inadequate education funding, with clashes between police and protesters intensifying political pressure on President Emmanuel Macron ahead of next year's presidential election.

Police arrested nearly 1,000 people as violence erupted in Paris and several other cities, the Associated Press reported, citing government officials. Authorities deployed 70,000 officers nationwide in an effort to prevent a repeat of the rioting and looting that accompanied demonstrations the previous weekend.

For investors, the unrest raises concerns about France's political stability, consumer spending and the government's ability to address inflation without worsening fiscal pressures. Continued demonstrations could disrupt businesses and tourism while complicating economic policymaking ahead of the May presidential election.

France's Interior Ministry estimated nationwide participation at 410,000, down from 550,000 the previous weekend. The CGT labor union, which helped organize demonstrations, put Saturday's turnout at nearly 800,000.

In Paris, police estimated that 110,000 people joined a march that ended in violence when masked protesters threw objects and fireworks at officers. Police responded with tear gas, stun grenades and water cannons.

Demonstrations also turned violent in Marseille, Lyon and other cities, where authorities reported fires, clashes and additional arrests. Interior Minister Laurent Nuñez said the arrest total was expected to rise as authorities completed their accounting.

The protests began more than a month ago over staffing shortages at a high school southeast of Paris before expanding into a nationwide movement demanding greater education spending and relief from rising household expenses.

Student organizations are calling for 250,000 additional places in higher education, more teachers and improvements to school facilities. They also want monthly student grants increased by €200 ($224) and rents frozen in public student housing.

Economic grievances have helped sustain the movement. French energy prices rose 21.3% in September from a year earlier, contributing to an annual inflation rate of 3.1%, according to the national statistics agency INSEE.

The unrest comes as Macron approaches the end of his presidency, with opposition parties seeking to capitalize on public dissatisfaction. Marine Le Pen's far-right National Rally has criticized the government's handling of public safety, while far-left presidential candidate Jean-Luc Mélenchon has supported the demonstrations and condemned police tactics.

Macron met with student representatives Friday and pledged changes to university admissions, but protest organizers said demonstrations would continue until the government announced concrete measures.

Businesses have already felt the effects of the unrest. Retailers boarded up storefronts in Paris, major museums closed and organizers of the Art Basel contemporary art fair canceled its weekend program because of security concerns.

Authorities also prohibited demonstrations in several cities, including Lyon, Nice and Montpellier, prompting criticism from labor unions that accused the government of restricting freedom of expression.

With another presidential election approaching, the protests threaten to keep economic inequality, inflation and government spending at the center of France's political debate, adding uncertainty for businesses and investors exposed to Europe's second-largest economy.

Dear Readers: We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion.