New Caledonia: 250 million euros released by the State to support the economy

New Caledonia is in crisis. Politically but also economically. This is why it has benefited from more than 250 million euros in exceptional aid from the State to revive its economy, which has been in crisis since mid-May, announced the High Commission of the Republic in New Caledonia on Tuesday. “In total, national solidarity has already made it possible to mobilize more than 250 million additional euros for the territory,” we can read in a press release published the same day.

The archipelago has been in the grip of violent clashes between Kanak separatists, loyalists and law enforcement since last May, which have led to the deterioration of many businesses and, above all, to a slowdown in economic life. Metallurgical industries have been slowed down or even shut down during the clashes. The financial toll has been heavy for the archipelago since the demonstrations, with 1.5 billion euros paid by the Caledonian government, which is asking the French government for aid.

20 million euros in aid for businesses

To revive the local economy, the State has set up a solidarity fund for businesses. The objective? To compensate for part of the loss of their turnover between May and June. Not to mention a repayable advance of 100 million euros to the government of New Caledonia.

1 in 3 jobs affected by the crisis in New Caledonia

Concretely, these financial difficulties represent a direct loss of around 6,000 jobs according to the High Commissioner. And this, without counting the approximately 15,000 employees on partial unemployment in the coming weeks according to the Caledonian government. In total, 20,000 private sector jobs out of the 68,000 that the archipelago had before the crisis are affected, or 1 in 3 jobs.

The 2025 finance bill will be decisive for the New Caledonian economy. It will determine the additional support from the State which will be part, more generally, of discussions on the future of the territory.