LONDON – Europe is likely to see intermittent protests over the summer against painful economic measures, impacting markets but much tamer than the violent unrest in Greece that sent jitters through southern Europe.
Long regarded as the most prone to street violence in western Europe — as well as the most financially troubled — Greece has seen several angry protests culminating in clashes early last month, that left three dead in a burning bank.
Greek militant groups have also detonated bombs, one of which killed an Afghan youth and another targeting the bourse.
Analysts say in southern Europe in particular, street protests are likely to recur periodically, but the main concern is whether governments rethink austerity measures as a result.
“There are going to be protests and people are going to try to torch banks from time to time,” said Eurasia Group analyst Jon Levy. “It is going to be occasional and far from the sort of thing that will bring society crashing down. But it will get a lot of media coverage and that means it may well have market impact.”
The violence in early May hit Greek assets, the euro and broader global markets as 24-hour news channels focused on Greece and investors worried the backlash might prompt the government to backtrack on vital reforms.
“When it comes to market reaction, the important thing is not so much how bad the violence and damage is as how much media attention is focused on it,” said Levy. “With Greece . . . it dominated the media agenda for several days.”
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