New Caledonian officials have raised an alarm over the rapid depletion of funds and massive debt following the 2024 violence that devastated the local economy. They are calling for national solidarity in the form of subsidies, criticizing the restrictive conditions of the state-guaranteed loan. The postponement of provincial elections was not even discussed in the latest congress session.
New Caledonia is facing a deep economic crisis since the 2024 violence, which caused a 13% drop in gross domestic product. The archipelago, historically fiscally autonomous, has become heavily indebted to the French Development Agency with a state-guaranteed loan of 1 billion euros. This funding has pushed the debt rate to 360%, sparking near-unanimous anger among elected officials.
During the latest plenary session of the congress on October 30, the postponement of provincial elections—a major political issue—did not prompt a single intervention. For months, the sole preoccupation of the elected officials has been hunting for the last subsidies to close out the year, as funds are nearly exhausted. 'We have no money left,' they summarize in their call for national solidarity.
Milakulo Tukumuli, an elected member of the Éveil océanien, condemns a 'guardianship bordering on infantilization.' The convention signed between New Caledonia and the national government severely limits operational margins: for any new expenditure, officials must vote for additional revenue or cut an expense in the same session. This is deemed untenable. Last Thursday, a proposal to smooth certain customs tariffs was urgently withdrawn from the agenda, as it would create an annual expense of 16,000 euros.
The elected officials advocate for subsidies rather than loans to restore autonomy and revive an economy laid to waste.