Islamic extremism hikes France investment risk

Herald News Daily:

Escalating religious and racial tensions in France have raised risks there for investors in the final three months of 2005, according to the latest quarterly analysis from strategic risk consultancy MIG.

Attacks by Islamic extremists are a particular risk, the London-based group said in its Grey Area Dynamics (GAD) report for the fourth quarter.

"A terrorist strike -- most likely in the capital -- is highly likely in the coming months," MIG said, hiking its risk rating on France by 1.5 points to 59.5, the single biggest quarterly rise for a developed economy.

French police arrested four people in a series of dawn raids earlier this month in the town of Montargis, some 100 km (60 miles) south of Paris.

The raids were part of a broadening investigation into Islamist militants suspected of plotting to attack a Paris airport and the capital‘s metro system.

The October arrests were linked to the seizure of four other suspects in September who were later charged with terrorism offences.

Although France opposed the U.S.-led war in Iraq, it says it is a target for Islamist militants because of its support for international military operations in Afghanistan, intelligence cooperation with Washington and support for North African states fighting Islamic extremists. Rising Islamic militancy is also the main factor behind a 1.5 point hike in MIG‘s risk rating for investors in Bangladesh to 75 -- the single biggest hike for any Asian economy in the quarter.

Extremists exploded nearly 500 small bombs across the country in the space of half an hour in August, killing four people and wounding at least 115 others.

So much for the claim that immigration helps a nation's economy.