Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting Club
PRO
LivestreamMenu
- French President Emmanuel Macron condemned foreign leaders’ comments on France’s unrest as “unacceptable” and “stupid.”
- Protests and political tensions are continuing: student union UNEF and the Yellow Vests have called for more rallies this weekend.
- France’s political turmoil is adding to investor concerns over its finances.
France’s President Emmanuel Macron speaks to members of the media on the day of the 9th Annual One Planet Sovereign Wealth Funds (OPSWF) Summit in Lusail on October 21, 2026. Benoit Tessier | Afp | Getty Images
French President Emmanuel Macron has criticized “unacceptable” and “stupid” comments made by foreign leaders and others after the country saw mass protests and its worst rioting in years.
“There was foreign disinformation in the aftermath, which prompted comments that were as unacceptable as they were stupid from many people, including foreign leaders,” Macron told reporters on Wednesday, according to Reuters.
Macron clarified he was talking about U.S. President Donald Trump “among others,” and said politicians were using the situation in France for their own ends.
Posting on his Truth social platform, Trump earlier this week blamed the unrest on “migrants, jihadists, and Communists” and told Europe to close its borders.
Trump and other Republicans, including Vice President JD Vance and Speaker Mike Johnson, have referenced the unrest in France on the campaign trail ahead of the upcoming U.S. midterms. They have claimed that Democrat policies on immigration would raise similar tensions.
Officials in Iran — where rights groups say authorities killed hundreds of people during a crackdown on recent demonstrations — have also weighed in, with Foreign Minister Seyed Abbas Araghchi calling on Macron to listen to the protesters’ demands.
Separate protests also took place in Italy, Spain, Portugal and Albania on Saturday and Sunday. Thousands of people marched in Greece on Wednesday for improved education services, in solidarity with French students whose protests were the initial trigger for mounting unrest in the country.
Tensions remain high in France. Student union UNEF and the anti-establishment “Gilets jaunes,” or “yellow vest” group, have both called for further rallies this coming weekend.
Macron — who has faced criticism this week for embarking on a tour of Gulf countries — has vowed that there will be no repeat of the recent violence. Several French cities were rocked by looting and arson at the weekend, alongside mass peaceful protests over the state of public services, the cost of living and discontent with political leadership.
French Interior Minister Laurent Nuñez said Wednesday that some military forces would be deployed to help maintain order.
French bond turmoil worsens
French social and political volatility is compounded by an emerging fiscal crisis, which on Thursday pushed its benchmark government borrowing cost to a fresh 24-year high.
The yield on 10-year French government bonds soared another 11 basis points on Thursday morning, hitting 5.113% and surpassing the yield on the 10-year U.S. Treasury for the first time since 2013.
Loading chart…
Investors are increasingly skeptical that France will pass a program of fiscal consolidation to shrink its high deficit-to-GDP ratio. Parliament is currently debating its 2027 budget, but the government lacks a parliamentary majority and may resort to special powers. Using those powers could provide short-term budget certainty but would likely stoke further political volatility.
France is facing spiraling debt servicing payments that are putting further pressure on its finances, raising the specter of potential intervention by the European Central Bank if the spread in its borrowing costs against euro area benchmark Germany continues to widen.
Businesses and insurers are meanwhile facing a financial hit from the recent protests, both from direct costs and public perception around the country.
Morningstar has estimated the cost of insured losses at up to 1.2 billion euros ($1.34 billion) amid widespread theft and damage to commercial premises and public buildings, assuming no further significant impact.
“The direct economic impact on France of the unrest surrounding the 17 October protests is likely to be limited, but it comes at a challenging time for the economy and public finances,” Mehdi Fadli, SVP for Global Sovereign Ratings at Morningstar, told CNBC by email.
Fadli noted the government’s recent revision of its 2026 real GDP growth forecast to 0.5% from 1%.
“Against a backdrop of continued uncertainty surrounding the international environment and the domestic presidential election, prolonged protests could further weigh on household and business confidence, dampening economic activity and exacerbating fiscal pressures in both 2026 and 2027,” Fadli said.
