4.2 billion euros to rebuild New Caledonia? The archipelago’s Congress calls on the State for help – 08/28/2024 at 2:33 p.m.

4.2 billion euros to rebuild New Caledonia? The archipelago’s Congress calls on the State for help – 08/28/2024 at 2:33 p.m.
4.2
      billion
      euros
      to
      rebuild
      New
      Caledonia?
      The
      archipelago’s
      Congress
      calls
      on
      the
      State
      for
      help
      –
      08/28/2024
      at
      2:33
      p.m.

This resolution, validated by the local deliberative assembly, must still be negotiated with the State.

(AFP / DELPHINE MAYEUR)

(AFP / DELPHINE MAYEUR)

The Congress of New Caledonia adopted by a large majority on Wednesday a resolution requesting massive state support of 500 billion Pacific francs (around 4.2 billion euros) to rebuild the archipelago after the riots that ravaged its economic fabric. This plan, which remains to be negotiated with the state, is intended to be presented quickly to the future national government so that it can be taken into account when examining the 2025 finance bill.

It aims to “firstly ensure the rescue of the country, and secondly, to initiate its reconstruction”, according to the resolution adopted on the initiative of the moderate non-independence group Calédonie ensemble.

Nearly half of GDP

The resolution also provides for the creation of an inter-ministerial committee bringing together representatives of New Caledonia’s institutions, as well as the appointment of a delegate reporting directly to the Prime Minister to ensure the implementation and monitoring of the plan.

Forty elected officials voted for this plan – one vote against and eight abstentions – the aid requested from Paris representing almost half of New Caledonia’s GDP, which in 2022 reached 1,092 billion francs (9.1 billion euros).

“This plan for reconstruction and financial, economic and social support (…)

is an essential element to enable the survival of our country” which is “on the way to becoming a tramp”,

said Philippe Gomès, one of the leaders of the Calédonie ensemble group, during the session.

“The situation we are in, beyond the responsibility of local actors, is primarily the responsibility of the State,” he added. All the groups sitting in the Congress also highlighted “the failure of the Caledonian model” justifying a “reform of the entire economic and social system” of the territory.

The collegiate government of New Caledonia – composed of elected officials from all parties – is working on this reform through a safeguard, rebuilding and reconstruction plan (PSRR), which must consult the population and be the subject of a conference in the fall.

Even before the crisis linked to the reform of the electoral body, which resulted in several weeks of riots, New Caledonia was facing a worrying financial situation, linked in particular to the crisis in the nickel sector.

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