New Caledonia’s Future in Jeopardy as French Government Falls

The recent fall of the French government has sent shockwaves through New Caledonia, leaving the territory’s economy and political future hanging in the balance. The collapse of the Barnier government has raised concerns about the availability of financial assistance for New Caledonia, which was already facing significant economic challenges.

The Economic Situation

New Caledonia is one of France’s overseas territories, with a population of around 280,000 people. The territory has been struggling to recover from a devastating insurrection on May 13th, which resulted in widespread destruction and disruption to the economy. The French government had pledged support to help rebuild the territory, but with the fall of the Barnier government, that support is now uncertain.

According to Nicolas Matador, New Caledonia representative at the National Assembly, “Without this [end of management] Bill 2024, as soon as mid-December 2024, New Caledonia would be faced with dramatic consequences such as the inability to pay public servants’ salaries, including health doctors, or to pay unemployment benefits or to fund the production of energy.”

The Impact on Politics

The fall of the Barnier government has also had a significant impact on political talks between New Caledonia and France. The territory’s politicians were preparing to resume crucial discussions regarding its long-term political future status, but with the loss of French support, those talks are now in jeopardy.

“We’ve already seen what impact the (June) dissolution has caused and how difficult it was to engage in talks (with France)”, pro-independence MP for New Caledonia at the National Assembly Emmanuel Tjibaou said in Paris.

The Concerns About Debt

One of the main concerns in New Caledonia is the risk of increasing debt. The territory’s politicians had been advocating for a “pro-grants” approach, where France would provide financial assistance without requiring interest payments.

“This will pause many crucial measures with a direct impact on their economic, social and environmental development”, said Philippe Dunoyer, New Caledonia politician from the moderate pro-French Calédonie Ensemble party.

A Last-Minute Bill for Emergency Expenses

The only short-term hope for New Caledonia is that the French National Assembly passes an “end of management” Bill 2024, which would allow for urgent financial assistance to be made available.

“We really didn’t need this, nothing has been spared to us during this mandature”, Metzdorf said earlier this week.

The Fear of “Hunger Riots”

New Caledonia’s politicians are also warning about the risk of “hunger riots” in the French Pacific archipelago, following the economic situation caused by the May insurrection and destruction.

“Over the last few weeks, several New Caledonian politicians have warned of a serious risk for what they term ‘hunger riots’ in the French Pacific archipelago”, said Metzdorf.

The Conclusion

The fall of the French government has left New Caledonia’s future hanging in the balance. With no clear plan for financial assistance and a risk of increasing debt, the territory’s politicians are facing an uncertain future. As one politician said, “But we’ll keep doing as we always do: we’ll fight”.