Cost of France’s protests running into the billions

PARIS—France’s wave of protests and violence over the past month or so has already cost the eurozone’s second-largest economy a fortune.

Road blockades, demonstrations and successive weekends of rioting in Paris and other towns have left supermarket shelves empty, stopped shoppers from buying Christmas gifts and scared away tourists.

The government stands to lose out too, with tax receipts set to be lower than anticipated. Government coffers will be tapped into next year to finance tax relief and other fiscal measures announced Monday by President Emmanuel Macron to placate the “yellow vest” movement, which started as a show of anger against fuel taxes but snowballed into a grab-bag of grievances.

Finance Minister Bruno Le Maire says the fallout from the protests, which have seen hundreds of arrests, 1,400 injured and five deaths in protest-related accidents, will shave 0.1 percent off French economic growth in the last quarter of 2018.

The forecast costs emanating from one of France’s most acute crises in over a decade are already running into the billions.

MACRON’S MEASURES

The president’s new steps to boost the spending power of retirees and low-paid workers, a shared demand of many yellow vests, include a $110 hike in the minimum monthly wage and tax relief.

The government says the total bill from its climbdowns so far will be around 10 billion euros ($11 billion). That includes around 6 billion euros for Macron’s new measures and an estimated 3.9-billion loss from the government no longer levying a carbon tax hike on fossil fuels.

The government intends to trim costs elsewhere and possibly increase borrowing to finance the hand-outs which it hopes will encourage protesters to abandon their road-side barricades and stop marching in Paris and other towns.

CHRISTMAS SHOPPING

The Federation of Commerce and Distribution, an industry group representing many of France’s largest chains, estimates retailers have suffered more than 1 billion euros ($1.1 billion) in lost revenues, with toy, clothing and food sales among the sectors hit. Lost revenues also mean lost sales tax receipts for the government.

TOURISM

Tourists brave enough to venture into the center of Paris last weekend found many sites shut and boutiques closed and barricaded behind plywood. Hardly an enticing advertisement for France’s capital of art, fashion, gastronomy and romance.

Reservations in Paris hotels are down for December, with an estimated 35,000 nights cancelled so far, market research consultancy MKG says.

FRANCE’S REPUTATION AND OTHER COSTS

Storeowners are replacing shattered windows while city workers have been towing away the hulks of burned-out cars and cleaning anti-government and anti-capitalist graffiti off shops, buildings and world-famous sites like the Arc de Triomphe, which reopens on Wednesday, more than a week after it was vandalized.

Also costly are repairs to traffic radars, another target of protests. They cost tens of thousands of euros each to replace.

Less quantifiable is the damage done to France’s image and to Macron’s efforts to project the country as a business-friendly country and open for investment.