The French Government has suspended planned fuel tax hikes following weeks of protests around the country.
The increases, due to come into force in January, have been suspended for six months.
Hundreds of people were arrested over the weekend as police clashed with demonstrators – firing tear gas, stun grenades and water cannon at protesters.
Around 75,000 people were estimated to have taken part in the protests across France on Saturday – and police said 133 people were injured in the violence.
Dubbed ‘Les Gilets Jaunes’ or “The Yellow Vests’ for the Hi-Vis safety vests they wear; the protesters were demonstrating against tax hikes and the high cost of living across France – however the movement has since become a focal point for general discontent with French President Emmanuel Macron.
Clashes between demonstrators and riot police in front of the Arc de Triomphe, 01-12-2018. Image: Boivin Samuel/ABACA/ABACA/PA Images
President Macron had vowed not to give in to street rule, but he has now been forced to reconsider.
In a speech this morning, French Prime Minister Édouard Philippe said the tax hikes have been suspended.
"This anger, you'd have to be deaf or blind not to see it or hear it," Mr Philippe said in an address.
"The French who have donned yellow vests want taxes to drop, and work to pay. That's also what we want.
“If I didn't manage to explain it, if the ruling majority didn't manage to convince the French, then something must change."
Protesters face off against police in Paris, 02-12-2018. Image: Blondet Eliot/ABACA/ABACA/PA Images
He added that "no tax should endanger national unity" and the "violence must stop."
He made the announcement three weeks after warning that the Government would not change its course.
It marks President Macron's first major U-turn in policy since coming to power in 2017.
The fuel taxes were earmarked to finance France's anti-climate change efforts; however many people have criticised him for pursuing policies they claim favour the rich.
Burnt vehicles are seen a day after clashes in Paris, 02-12-2018. Image: Plessis Thierry/ABACA/ABACA/PA Images
Saturday's protests turned particularly violent with the Arc de Triomphe vandalised and over 100 people injured.
Four people were killed, including an 80-year-old woman who died in hospital on Sunday after being hit by a tear gas canister in Marseille.
Police said 412 people were arrested.
The suspension will be accompanied by other measures aimed at calming the unrest.
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