For almost two weeks, France has been plagued by rioting, who have burned vehicles by the thousands and clashed with police. Economists and political analysts are now beginning to asses the political and economic implications of the civil unrest. Several have speculated that the rioting will spread to neighboring European countries, which would significantly disrupt the Euro-zone economy. Currency traders are also beginning to react to the riots, in theorizing that they are indicative of negative sentiment towards the French economy. If these riots are not soon quashed, the Euro will likely continue to suffer. Reuters reports:

“Concerns about the ongoing riots in France, to the extent they are a reflection of the social consequences of prolonged anemic growth in the eurozone, may also be playing some role in limiting the euro’s ability to benefit from improved interest rate support.”

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