French police fired tear gas and water cannons at cost-of-living protesters on Saturday, a week after looting hit Paris. Authorities deployed 70,000 officers, and French 10-year bond yields moved toward 5.0% as the unrest overlapped with a budget standoff.
Police used tear gas and water cannons to disperse protests in major French cities on Saturday, including Paris and Marseille. The looting and rioting seen during last week's protests did not materialize, Business Insider reported.
Interior ministry deploys 70,000 officers
Interior Minister Laurent Nuñez mobilized 70,000 police officers, 10,000 more than during the violent demonstrations of Oct. 17, according to Investing.com. The same report said security forces had arrested at least 135 people nationwide by midday.
Later in the day, Nuñez said in a statement that authorities had made about 1,000 arrests as of 7:30 p.m. local time. In Paris, thousands of officers largely prevented looting by keeping protesters to a predetermined parade route.
Shops on the Champs-Élysées were boarded up, and the Louvre said in a website notice that it would be closed on Saturday with all reservations reimbursed.
Italy sees clashes, but no fresh looting
Across the Alps, Italian riot police mobilized in Turin, Rome and Bologna to contain renewed rallies. Reuters witnesses reported sporadic clashes with police but no fresh looting or store vandalism, according to Investing.com.
French bond yields near 5.0%
The unrest reached bond markets. Benchmark French 10-year government bond yields spiked toward 5.0%, near levels unseen in over two decades. The premium investors demand over German Bunds widened beyond 150 basis points, its widest spread in roughly 14 years.
The protests coincide with parliamentary gridlock over the government's contested 2027 austerity budget. The administration is struggling to narrow a budget deficit near 5.4% of GDP and a national debt near 119% of GDP.
Analysts note that European banks hold significantly stronger balance sheets than during the 2010-2012 sovereign debt crisis, but extended unrest in France and Italy threatens to keep sovereign risk premiums elevated across southern European debt issuers.
Sources: Investing.com, Business Insider
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