Pro-independence flags are displayed on a roundabout in central Kone, New Caledonia, August 14, 2024. DELPHINE MAYEUR FOR “LE MONDE”
To deal with the crisis that broke out in mid-May in the archipelago, the government has released 130 million euros in additional aid for businesses and public services in New Caledonia. “This state aid will in particular make it possible to finance the operation of public services (health, electricity) and the payment of social benefits in September.”announced the Ministry of the Economy on Wednesday, September 4. Bercy specified in a press release that their payment will be conditional “to the adoption of reforms to improve the New Caledonian economic and social model”.
With this new aid package, the State’s support for New Caledonia amounts to 400 million euros, excluding support for the nickel industry, since the riots which ravaged the territory and destroyed its economic fabric, the press release adds.
In detail, “if the conditions set by the State are respected”it will pay 48.4 million euros in repayable advances to the community of New Caledonia, including 41.9 million to finance the local health insurance system and 4.8 million euros to avoid the cessation of payments by the electricity system manager Enercal.
While 100 million euros have already been paid to the New Caledonian government at the end of July to finance the partial unemployment scheme, an additional 61.4 million euros will be released to finance it in September and October. According to figures from the local government, the destruction, looting and fires have caused at least 2.2 billion euros of damage and nearly one in five employees is on total or partial unemployment.
In late August, the New Caledonian Congress adopted a resolution calling for massive state support of 500 billion Pacific francs (about 4.2 billion euros) to rebuild the archipelago. At the same time, the local government has begun public consultations ahead of a plan “safeguarding, rebuilding and reconstruction” aiming to change the economic and social model of New Caledonia.
On Tuesday, the loyalist leader and president of the Southern Province – the richest and most populated in New Caledonia – Sonia Backès, was received at the Elysée by Emmanuel Macron. “On the economy, we discussed the need to move very, very quickly to a phase of massive public investment to restart the economic machine. [Le chef de l’Etat] told me he shared this vision of things”she said after the meeting.
