France’s Anti-Immigration Far-Right Gets Boost from Riots Over Police Killing of Teen 

French far-right leader Marine Le Pen talks with National Rally group members at the National Assembly, Monday, Feb. 6, 2023 in Paris. (AP)
French far-right leader Marine Le Pen talks with National Rally group members at the National Assembly, Monday, Feb. 6, 2023 in Paris. (AP)
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France’s Anti-Immigration Far-Right Gets Boost from Riots Over Police Killing of Teen 

French far-right leader Marine Le Pen talks with National Rally group members at the National Assembly, Monday, Feb. 6, 2023 in Paris. (AP)
French far-right leader Marine Le Pen talks with National Rally group members at the National Assembly, Monday, Feb. 6, 2023 in Paris. (AP)

Widespread riots in France sparked by the police killing of a teenager with North African roots have revealed the depth of discontent roiling poor neighborhoods — and given a new platform to the increasingly emboldened far-right.

The far-right's anti-immigration mantra is seeping through a once ironclad political divide between it and mainstream politics. More voices are now embracing a hard line against immigration and blaming immigrants not only for the car burnings and other violence that followed the June 27 killing of 17-year-old Nahel Merzouk, but for France's social problems as well.

“We know the causes” of France’s unrest, Bruno Retailleau, head of the conservative group that dominates the French Senate, said last week on broadcaster France-Info. “Unfortunately for the second, the third generation there is a sort of regression toward their origins, their ethnic origins.”

Retailleau’s remarks, which drew accusations of racism, reflect the current line of his mainstream party, The Republicans, whose priorities to keep France “from sinking durably into chaos” include “stopping mass immigration.”

“As soon as we want to be firm,” Retailleau said Tuesday on RTL radio, “they say, ‘Oh la la. Scandal! The fascists are arriving! You’re like the National Rally,'” the main far-right party. “We’re sick of being politically correct.”

His response marked the latest fracture in a crumbling concept dubbed the “Republican Front,” under which French parties, whatever their political color, used to stand together against the far-right.

By linking immigration to the riots, Retailleau violated France’s near-sacred value of universality by which all citizens, whatever their origin, are recognized only as French.

The far-right appeared to capitalize on a sudden shift in the national mood to make further inroads: Shock and horror at Merzouk’s death quickly morphed into shock and horror at the violent unrest, which spread from the outskirts of major urban areas to cities to small-town France. In just four days, an extreme-right crowdfunding campaign raised more than 1.5 million euros ($1.6 million) for the family of the police officer accused of killing Nahel.

Far-right figures have long blamed immigration from majority Muslim North Africa, and some immigrants' failure to assimilate into French culture, for France’s social problems.

“We suffer an immigration that is totally anarchic,” the National Rally's Marine Le Pen, the leading far-right figure in France, said last week on France 2 television. She claimed the riots were the work of “an ultra-majority of youth who are foreign or of foreign origin,” and said there was “a form of secession of these youths from French society.”

Le Pen’s critics note that successive French governments have failed to integrate new arrivals, and that communities with immigrant backgrounds face disproportionately higher poverty, unemployment and deep-seated discrimination.

But the far-right leader's voice resonates ever more loudly in France. Le Pen has spent years scrubbing up the image of her National Rally, and gained a powerful perch in parliament in legislative elections a year ago with 88 lawmakers. Le Pen now sits at the heart of institutional France.

Le Pen’s party has progressively anchored itself among French voters. She won more than 41% in the runoff presidential vote last year.

“There are practically no more categories of the population immune to a (far-right) vote,” polling agency Ifop said after a recent survey showing a steady rise in voters who have cast a ballot for Le Pen’s party.

President Emmanuel Macron’s centrist government took a tough line against the recent violence, but disputes Le Pen’s characterization of those who rioted, with Interior Minister Gerald Darmanin stressing that only 10% were foreigners. At a Senate hearing last week, he noted that some children with immigrant roots enter the police force.

Prime Minister Elisabeth Borne criticized the GoFundMe campaign for the police officer's family as unhelpful in tense times. But its success appeared to reflect a clamor for security, another prize issue of the far-right.

Jean Messiha, a former official in the National Rally and the upstart hard-right Reconquest party, called the enormous response to the fund that he started a “tsunami” in support of law enforcement officers “who in a certain way fight daily so that France remains France.”

The French far-right has many faces, inside and outside the political sphere, ranging from the National Rally to Eric Zemmour’s Reconquest, whose vice president is Le Pen’s niece Marion Marechal. Both Zemmour and Marechal espouse the racist “great replacement” theory that there is a plot to diminish the influence of white people and replace cultures, particularly through immigration.

On France's fringe is an ultra-rightist movement, which includes conspiracy theorists, whose potential for violence worries authorities.

“The terrorist risk it engenders has grown in recent years within Western democracies — France, in particular,” Nicolas Lerner, head of France’s internal security agency, DGSI, said in a rare interview published in Le Monde newspaper. The ultras believe, he said, that they must do the job of the state in protecting Europe from terrorists and the "great replacement,” and one way to do that is to “precipitate a clash to have a chance to win while there is still time.”

Ten attacks have been thwarted by people from the fringe movement since 2017, he noted.

Mainstream politics is not inoculated.

The tone of political discourse, even in mainstream politics, can contribute to forging ultra rightists, Lerner warned.

“Last year’s presidential and legislative elections ... marked by debates reflecting traditional concerns of the far-right, notably on migratory issues, had a tendency to channel energy,” he said.



Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
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Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)

Several of Europe's biggest financial firms have cut back their links to Israeli companies or those with ties to the country, a Reuters analysis of filings shows, as pressure mounts from activists and governments to end the war in Gaza.

While banks and insurers are often vocal about their environmental and governance aims, they are less forthcoming about disclosing their potential exposure to war.

UniCredit put Israel on a "forbidden" list as the conflict escalated in October last year, said a source familiar with the matter, confirming a study by Dutch NGO PAX.

While in line with the Italian bank's defense-sector policy of not directly financing arms exports to any country involved in conflict, it goes beyond Italy's guidelines on arms exports to Israel.

UniCredit declined to comment on its move and the Israeli finance ministry also declined to comment.

Meanwhile, Norwegian asset manager Storebrand and French insurer AXA have sold shares of some Israeli firms, including banks.

Although corporate filings offer only a glimpse into such exposures, they show companies have been readjusting.

"We don't know whether this represents the beginning of a shift in the industry, one that recognizes the power banks have in choosing where to allocate capital, and where not," said Martin Rohner, executive director at the Global Alliance for Banking on Values, which focuses on sustainable financing.

"Investing in the production and trade of weapons is fundamentally opposed to the principles of sustainable development," Rohner added.

Israeli Finance Minister Bezalel Smotrich told a press briefing last week that although there are challenges to Israel's economy, firms are still raising money. "I sit with foreign investors and they believe in our economy," he said.

Reuters has reported that Israel's investor base has narrowed since it entered Gaza last year in response to attacks by Hamas, and it is feeling the effects of rising borrowing costs.

The potential wider effects can be seen in the approach taken by Storebrand, which a filing showed divested a holding worth about $24 million in Palantir, citing the risk of violations of international humanitarian law and human rights.

US group Palantir, which provides technology to Israel's military, did not respond to a request for comment.

Storebrand's annual investment review said that, as of the end of 2023, it had excluded 24 firms, including Israeli companies, across its portfolios in relation to the occupation of Palestinian territories.

The International Court of Justice, the United Nations' highest court, ruled in January of plausible risk of irreparable harm to Palestinian rights to be protected from genocide.

The same court said in July that Israel's occupation of Palestinian territories including the settlements is illegal.

Israel has rejected the rulings, which combined with growing pressure from activists and governments, are nevertheless having an impact on investment decisions.

AXA, one of Europe's largest insurers, British bank Barclays and German insurer Allianz have increasingly been targeted by campaigners.

"Increasing demand for greater transparency and scrutiny can only mean that financial institutions will intensify and broaden their self-assessment of their commercial associations with arms-related businesses or states," said David Kinley, professor and chair of human rights law at the Sydney law school.

The Ireland Strategic Investment Fund (ISIF) has exited six Israeli companies, selling holdings which amounted to about 3 million euros ($3.26 million), including some of Israel's largest banks, a spokesperson told Reuters.

Earlier this year, the 15-billion-euro Irish fund said that the risk profile of such investments were no longer within its investment parameters.

And Norway's $1.8 trillion wealth fund, the world's biggest, may divest shares of companies that aid Israel's operations in the occupied Palestinian territories which violate its ethics standards for businesses.

WAR EXPOSURE

Investments in Israeli banks are also under scrutiny.

The UN included them in 2020 in a list of companies with ties to settlements in the occupied Palestinian territories as part of its mission to review the implications on Palestinian rights.

A study by research firm Profundo, commissioned by corporate watchdog Ekō, shows that AXA sold almost all of its holdings in Israeli banks stocks earlier this year, retaining only a marginal stake in Bank Leumi.

Reuters verified the data with LSEG. A representative for Bank Leumi did not respond to a request for comment.

A spokesperson for AXA declined to comment on whether AXA had cut its holdings, adding that it is not invested in the banks targeted by activists. The UN list is among the criteria AXA takes into account for investment decisions, they added.

'A CLEAR LINE'

Foreign direct investment into Israel fell by 29% in 2023 to its lowest since 2016, UN Trade and Development data shows.

While UNCTAD 2024 figures are not available, credit ratings agencies have flagged the war's unpredictable impact on investment in Israel as a concern.

Although the US remains Israel's biggest military and financial backer, Spain, Ireland and Norway have recognized a Palestinian state, French President Emmanuel Macron has called for an arms export halt and Britain has suspended some licenses.

When it comes to international politics, "it should be down to the governments to take a clear line," said Richard Portes, professor of economics at London Business School, adding: "To put the burden on the private firms, where does this end?"

In an example of how activists are targeting companies directly, Barclays came under pressure from a campaign in Britain, prompting it to withdraw sponsorship from summer music festivals, while the Financial Times reported in August that it considered pulling out of an Israeli government bond sale.

Barclays said in a statement that it remained "fully committed" to its role as a primary dealer and that such activities fluctuated each quarter. The bank fell out of the top five dealers of Israeli bonds in the second and third quarters, after ranking third in 2023.