The owner of a jewelry store examines the damage.
(Photo: dpa)
Paris After six nights of violence, Thierry Véron, President of the Paris retail association Facap, appealed to politicians for help. The situation is “dramatic,” Véron told radio station France Bleu on Monday. Some shopkeepers armed themselves to protect their shops from the looters. “We are in a state of despair, of great anger.”
Véron requested financial support from the state and the city of Paris. Because the retail trade not only bears the costs of the devastation, but also has a loss of income if shops have to remain closed during the repair work. The mayor of Marseille has already promised the shops in the Mediterranean city two million euros in emergency aid – but this sum should not be enough.
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The riots that followed a police officer’s fatal shot at a youth not only plunged France into a domestic political crisis, they also shocked the country’s economy. Even if the violence died down on Monday night, it is still too early to take stock. However, comparisons are made with the suburban riots of 2005 and the yellow vest protests of 2018, where the amount of damage was estimated at 200 and 250 million euros respectively.
The French employers’ association Medef on Monday expressed its support for the “thousands of entrepreneurs and retailers” whose premises were devastated. “Of course, this flare-up of violence has economic and social consequences,” the association said.
The Parisian luxury mile was not spared from the riots.
(Photo: dpa)
The “irreparable losses” could lead to short-time work or even job destruction. The current situation is also damaging the image of France as a business location.
“In addition to the cancellations already registered in the tourism industry, investors could withdraw from projects if calm is not restored and safety guaranteed,” the statement said.
Rioters looted dozens of shopping malls
According to the first official figures, the devastation hit dozens of shopping centers, around 200 supermarkets, more than 250 tobacconists, around 250 bank branches and many restaurants. The displays of numerous fashion boutiques, electronics stores and other retailers were also looted. In Strasbourg, rioters cleared out an Apple Store in broad daylight.
The rioters destroyed over 700 shops.
(Photo: Sebastien ORTOLA / REA/laif)
The tourism sector is also affected, with several countries issuing a travel warning for France. According to the Paris Tourism Office, 20 to 25 percent of international guests canceled their stay in the past few days. Concerts and festivals have been cancelled. The public transport companies in French cities suffered millions of dollars in damage as a result of burning buses and trams.
Finance and Economy Minister Bruno Le Maire said that more than 90 percent of the shops and businesses affected had insurance coverage. The minister called on the insurers to pay out the compensation as soon as possible and to reduce the deductible.
After the death of a teenager during a police check, there were violent riots in several French cities.
(Photo: dpa)
The French insurance industry association, France Assureurs, said the industry was “fully mobilized” to help its customers. With a view to a possible reduction in deductibles, however, the association kept a low profile.
Business associations are demanding emergency aid from the state
The government wants to help the affected businesses with deferrals on taxes and social security contributions. Le Maire also appealed to the banks to show “the greatest possible understanding” when loan installments are due. Retailers want this understanding from the state as well and are demanding that the deadlines for repaying the aid loans granted during the pandemic be extended.
The French President meets with residents of the Benza neighborhood, which was particularly hard hit by the riots.
(Photo: dpa)
For Yohann Petiot, head of the retail association Alliance du Commerce, the government’s commitments are not enough. “We’ll have to do more,” he said. “The amount of damage will be extremely high.” The riots hit the shops in the middle of the summer sales, their sales losses are enormous.
Petiot brought up a state compensation fund for particularly affected dealers. The French association of small and medium-sized companies CPME also called for emergency government aid, as the economic existence of many retailers is at stake. The relief numbers announced by some cities and regions should be extended to all of France, the CPME said.
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