More than two weeks of rioting by Posted on 11/12/2005 9:13:32 PM PST by ncountylee
UNREST: Although the direct losses due to the riots are relatively small, the collateral damage done to tourism and the country's image could be severe, analysts warn
More than two weeks of rioting by youths in France have left a mark on the country's less than shining economy.
The direct losses -- despite spectacular pictures of buses and carpet warehouses ablaze -- are small. It is France's image that has suffered the greatest damage.
Though it markets itself worldwide as a land of luxury, culture and savoir-vivre, France has now been seen pocked with poverty and violence. The French tourist industry fears that business may fall off during the important Christmas season as a result.
Meanwhile, France is having increasing trouble getting its budget deficit below 3 percent of GDP, as required by the EU's Stability and Growth Pact.
As befits his position, French Economics Minister Thierry Breton exudes optimism. The riots would not slow economic growth, he said.
Independent economic experts are not so sure, however. Analysts at Credit Agricole, France's largest bank, figure that the government will have to boost expenditures by 2 billion euros (US$2.334 billion). Simply fulfilling its promise to hike spending on urban renewal by 25 percent would cost a billion euros, they say.
On top of that come 5,000 more teachers and 100 million euros for organizations in the troubled neighborhoods, 70,000 additional scholarships, vocational advancement programs, five new tax-free zones for investors, and so forth.
Paying for all that probably means borrowing. So hopes of bringing the budget deficit under 3 percent again next year are shaky.
The direct losses due to the riots -- several hundred million euros -- are considerable but no greater than those caused by a serious storm. And there was no looting as in New Orleans after Hurricane Katrina.
Consequently, the French Federation of Insurance Companies (FFSA) is unruffled. It estimates 20 million euros in claims for the 6,600 cars that were torched, and puts total insurance claims -- including damage to sport facilities, schools and businesses -- at 200 million euros.
The sum is not peanuts for an industry that pays out 7 million euros in fire damage claims each year in France. It is no cause for concern either.
That leaves the collateral damage done to tourism. Companies offering city tours are especially worried, though they do not want to say so loudly.
It is hardly an invitation for a romantic honeymoon on the Seine when British correspondents on the Champs-Elysees write "Paris is burning," or when American TV reporters in France are seen wearing helmets and bulletproof vests.
According to French reports, up to 30 percent of the trips booked to Paris at travel agencies in the US have been cancelled since the riots.
It does not matter that most French people also experienced them only via the media -- or that no on ghetto for a holiday anyway. It is hard to assess security risks from afar.
So if France stays "hot," a lot of foreigners could decide to skip Paris at the turn of the year.
That's going to leave a mark.
"France is having increasing trouble getting its budget deficit below 3 percent of GDP"
Right...
They haven't had that much trouble because they haven't actually done it.
Awwww,that's really too bad. I hate to see the French economy suffer.
Once and for all "Its not poverty its Islam" thats behind these here riots.
You fix their poverty and give Islam control of technologically advanced countries it will just mean they'll be stronger in their Jihad against the west.
On top of that come 5,000 more teachers and 100 million euros for organizations in the troubled neighborhoods, 70,000 additional scholarships, vocational advancement programs, five new tax-free zones for investors, and so forth.
I saw a picture of a trashed cyber cafe (near the Place de Republique). All the computers were gone. There was one broken monitor on the floor. I do not believe the claim of no looting.
I think some of the blogs out of France also dispute the no looting claim.
I saw a picture of a trashed cyber cafe (near the Place de Republique). All the computers were gone. There was one broken monitor on the floor. I do not believe the claim of no looting.
I think some of the blogs out of France also dispute the no looting claim.
I distinctly recall reading in the first week that there was looting. It's beyond the point where a guy has to jot down reported facts and watch for them to be left out later in the week's reporting.
Well, that is actually only 3 trips cancelled.
I watched a German news interview of a French guy, whose car was lit up. The guy had only liability insurance on the car. There is no one standing there to pay him back for the car being gone. He is extremely bitter about what they did and the fact that the French government rewarded them with 35 billion Euro of support....and he got nothing. He has a point...I'd be in Muslim neighborhoods...looking for payback.
That must be because they burned everything worth looting.
The squeaky wheel gets the grease, especially in a socialist society that has a history of buying off its enemies (or surrendering to them).
I would be tempted to look for those cars with the decals or Korans on the seat and bring a little payback to them. But that's just me...being me.
bttt
Well, I already had sufficient reason to not go back to France, but another reason is always ok. It's not all that great in terms of sightseeing anyway. Italy is much better.
Hey, if their Christmas travel is down, maybe they can make it up with Ramadan trips next year?
ya but the other 70% are the m people coming in brotherhood.
Ah yes, all of those laws to "protect French jobs" really seem to have worked, eh Paleocons?
More than two weeks of rioting by Really? The image I have always had of the French was of a bunch of ungrateful, whining, lazy, pompous, self-congratulating, cheese-eating surrender monkeys. You mean it might get worse than that?
Hey, guys, really...Mr. Frenchy Frenchman, you are the ones who double-dealed with Saddam under the table while he was killing innocents and starving his own people. You are the ones who tried to stop the US from punishing Saddam for the same crimes. You are the ones who were so sure that the biggest threat to your country was that big, mean old United States for diluting your Purity Of Essence with hamburgers and Micky Mouse...all the while you invited fanatical towelheads in to fill cheap housing and go on the dole. Could it be that "diversity", the four-day work week, and silly little berets can't protect you from young rioting Muslim punks who you don't have the guts to shoot?
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