French riots have potential to cause long-term effects

Significance

The riots appeared to abate and then almost cease on the nights of July 1 and 2 but the situation remains extremely tense and authorities fear that a new escalation is possible.

Impacts

• The riots will be used by the right in France and other countries as an example of the perceived dangers of immigration.
• The fear of unrest in urban areas threatens further to weaken consumer confidence and economic growth prospects.
• Should the riots persist, they could spread to neighbouring countries where migrant communities feel alienated by the police.