Protests in France eat into economy

The French government said Monday that weeks of striking against an unpopular pension reform were costing the country up to 400 million euros ($516.4 million) per day.

Economics Minister Christine Lagarde said the strikes against President Nicolas Sarkozy's plan for a two-year rise in the retirement age were taking a toll on businesses and damaging France's image at a fragile time for the second-largest economy in Europe.

"We can make an estimate - the bracket is wide, between 200 and 400 million euros per day," Lagarde, who just came back from a G20 finance ministers' meeting in South Korea, told Europe 1 radio. "There is also a moral hazard: The attractiveness of the (French) territory is in the balance when you see images like these."

Lagarde also warned that footage broadcast around the world of demonstrators clashing with riot police and of industrial sites blocked by protesters had cost France dearly in terms of its international image for investors.

The Le Figaro newspaper commented that with strikes, demonstrations, blocked public transport and fuel shortages paralyzing and disorganizing the country, France is running with a bag of rocks on its back in the quest for growth.

Shortly after Lagarde's statement, workers at three refineries voted to return to work after a 10- day stoppage.

The French oil sector lobby group UFIP said all of France's fuel-distribution depots have now been cleared of blockades by protestors, but it warned that the situation was still difficult in many areas, as one in three filling stations was not fully supplied.

In a separate report, Chinese President Hu Jintao will make a state visit to France from November 4 to 6.

According to AFP, France sees China as a huge potential market for its engineering expertise, Sarkozy is particularly keen on maintaining warm relations with Beijing as he prepares to take on the chairmanship of the G20 group of powers.

Agencies