French firms don’t see riots as long-lasting scar

BLOOMBERG

The world may have been shocked by images of burning cars and buildings during riots in France this month, but for French business leaders gathered in Aix-en-Provence, it’s overblown.
Many of the attendees of a gathering in Aix that’s often dubbed the “French Davos” insisted on the resilience of the nation’s economy — even as they conceded that some partners cancelled business travel to France, and that some of their employees downed tools to join the riots.
Grocery chain Carrefour SA was especially exposed, as some of its stores were ransacked. Chief Executive Officer Alexandre Bompard also said that some of his young employees participated in the violence.
“It was incredibly painful to see our stores being looted,” he said, blaming inflation and “a feeling of exclusion.”
The riots and looting in deprived and diverse suburbs known as “banlieues” have exposed deep rifts in French society. Repairs are now underway to clean up burnt buses and smashed glass fronts, with insurers estimating damage claims at about €280 million ($305 million) so far. This compares with 10,000 claims for a cost of €205 million during the last major riots in late 2005, according to Florence Lustman, chair of French insurers’ lobby France Assureurs.
The episode, sparked by the deadly shooting of a 17-year-old by a police officer in the suburb of Nanterre near Paris, raises big questions for President Emmanuel Macron on current and past governments’ failures to tame inequalities and address issues in policing. It’s unclear how it will affect Macron’s drive to attract foreign investment, although his advisers say they’re confident it won’t.
Still, Jean-Pierre Clamadieu, the chairman of energy giant Engie SA, acknowledged that some US colleagues cancelled planned meetings in France
“because of images on TV that looked like a civil war.” Still, he added: “It doesn’t reflect reality.”
The riots also raised questions for the business leaders who gathered in Aix to participate in panels on public debt, on how to connect generations together and how re-balance power within companies. This year, the conference theme was “How to recreate hope.” The gathering was an opportunity to capture the zeitgeist of France Inc, whose stewards are often reluctant to comment on social issues.
The chairman of Renault SA, Jean-Dominique Senard, speaking on a panel entitled “Development, durability, what choices for humankind?” said the nation’s troubles are “related to the issue of evolution of capitalism,” without elaborating. Senard has previously advocated for companies to focus on general interests and not just profits.
“Our role is social inclusion,” said Carrefour’s Bompard. “We need to stay in these areas and train people.”
The riots have mostly abated in the past week as the government rolled out some 45,000 police officers on the ground.
Macron’s government has also played down the significance of the episode, rejecting comparisons with 2005 and saying that protesters had no clear demands for those in charge of public policies. Prime Minister Elisabeth Borne, who cancelled her appearance in Aix, told Le Parisien that on the worst night of rioting, 7,000 to 8,000 people were on the streets, a fraction of the 6 million residents of neighbourhoods identified by the government as needing special funds.