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Why violent protests are sweeping across Europe over living costs
CNBC • • general
Key Points:
- Hundreds of thousands protested across Europe over high living costs and strained public services, with France seeing the largest demonstrations of over 500,000 people, some turning violent with looting and clashes with police.
- Protests were triggered by various issues: poor school conditions in France, steep rent hikes and evictions in Spain and Portugal, and university fees and conditions in Albania, all amid rising fuel and energy prices influenced by conflicts in Iran and Ukraine.
- Economic challenges including slow growth, high public debt, rising unemployment, and declining purchasing power are limiting governments' ability to improve living standards or increase public spending, fueling public discontent.
- France faces added fiscal pressure as unrest raises concerns about its debt and budget deficit, with experts warning of potential tax increases and difficult austerity measures, while political tensions rise ahead of the 2027 presidential election.
- Portugal, with a stronger fiscal position, is focusing on increasing housing supply to tackle soaring costs, but overall European economic stagnation hampers wage growth and funding for better public services across the continent.
