French President Emmanuel Macron speaks to members of the media on the day of the 9th One Planet Sovereign Wealth Fund (OPSWF) annual summit in Lusail on October 21, 2026.
Benoît Tessier | AFP | Getty Images
French President Emmanuel Macron criticized “unacceptable” and “stupid” comments from foreign leaders after mass protests and the worst violence in the country erupted in years.
“Then foreign disinformation began to flow and comments from many people, including foreign leaders, made comments that were both foolish and unacceptable,” Macron told reporters on Wednesday, according to Reuters.
Macron clarified that he was talking about US President Donald Trump “in particular” and said politicians were exploiting the situation in France for their own ends.
President Trump posted on his social platform Truth earlier this week, claiming that the riots were caused by “immigrants, jihadists, and communists” and instructing Europe to close its borders.
President Trump and other Republicans, including Vice President J.D. Vance and House Speaker Mike Johnson, cited the turmoil in France while campaigning ahead of the upcoming U.S. midterm elections. They argue that Democratic immigration policies will increase similar tensions.
Political sparring extends to government agencies as well. U.S. Immigration and Customs Enforcement (ICE) wrote to X on Wednesday that it is “fighting to prevent America’s streets from becoming like this.” The post included footage that appeared to refer to the French mob.
“We are fighting to prevent France’s statistics from becoming like this,” France’s Ministry of Europe and Foreign Affairs responded on its own X account, showing a diagram showing the disparity in the number of firearm homicides in the United States per 100,000 people compared to G7 countries.
Human rights groups and Iranian officials say authorities have killed hundreds of people in recent crackdowns on protests, and Foreign Minister Abbas Aragushi called on President Macron to heed the demands of protesters.
Separate protests were held in Italy, Spain, Portugal and Albania on Saturday and Sunday. Thousands of people marched in Greece on Wednesday to demand better education services, in solidarity with French students in the protests that first sparked growing unrest in the country.
Tensions remain high in France. Both the student union UNEF and the opposition Gilets Jaunes, or “yellow vest” group, have called for further rallies this weekend.
President Macron has faced criticism as he begins a tour of the Gulf this week, but has vowed not to repeat recent acts of violence. Several French cities were rocked over the weekend by massive peaceful protests over the state of public services, the cost of living and dissatisfaction with political leaders, as well as looting and arson.
French Interior Minister Laurent Nuñez said on Wednesday that some troops would be deployed to maintain order.
French government debt turmoil deepens
France’s social and political instability has been exacerbated by a new fiscal crisis, with benchmark government borrowing costs rising to the highest in 24 years on Thursday.
The French 10-year bond yield rose another 11 basis points on Thursday morning to 5.113%, surpassing the U.S. 10-year bond yield for the first time since 2013.
Investors are increasingly doubtful that France will pass a fiscal consolidation plan to reduce its high budget deficit-to-gross domestic product (GDP) ratio. Parliament is currently debating the 2027 budget, but the government lacks a parliamentary majority and could resort to special powers. While such powers could provide budget certainty in the short term, they are likely to increase political instability.
France is facing a surge in debt repayments, further straining its finances and raising concerns that the European Central Bank could intervene if the euro zone benchmark borrowing cost spread over Germany continues to widen.
Meanwhile, businesses and insurance companies are facing economic damage from both the direct costs and public perception of the recent protests.
Morningstar estimates the cost of insured losses at up to 1.2 billion euros ($1.34 billion), assuming no further significant impact, amid widespread theft and damage to commercial and public buildings.
“While the direct economic impact of the unrest surrounding the October 17 protests on France is likely to be limited, it comes at a difficult time for the economy and public finances,” Mehdi Fadli, Morningstar’s senior vice president of global sovereign ratings, told CNBC in an email.
Fadli noted that the government recently revised its real GDP growth forecast for 2026 from 1% to 0.5%.
“Amid continued uncertainty surrounding the international environment and domestic presidential elections, prolonged protests could further weigh on household and business confidence, slowing economic activity and exacerbating fiscal pressures in both 2026 and 2027,” Fadli said.
