Independentists from the FLNKS rejected the state's proposed 'economic and social refoundation pact,' deeming it inequitable. This pact, stemming from the Bougival agreement they denounce, aims to revive the economy in crisis following the May 2024 violence. They presented their own proposals, including a tax on high-value assets.
On October 15, 2025, the state and its Caledonian partners began discussions on the 'economic and social refoundation pact' outlined in the Bougival agreement, still rejected by independentists from the Front de libération nationale kanak et socialiste (FLNKS). The Caledonian economy is in freefall: GDP fell 13.5% in 2024, public finances are depleted, and fiscal revenues dropped 21% after the May 2024 violence, which caused 14 deaths and billions of euros in damages.
The new Overseas Minister, Naïma Moutchou, joined via videoconference and stated that 'the government's determination remains intact' despite delays from Paris's political situation. 'Prime Minister Sébastien Lecornu has made New Caledonia a government priority. And the President of the Republic fully shares this will to move forward. Forward without haste, but without pause,' she said, quoted by Les Nouvelles Calédoniennes. She announced an upcoming visit to continue dialogue.
The Bougival agreement faces political uncertainties. Its first step, postponing provincial elections to spring 2026, was approved by the Senate on October 15 with 299 votes to 42. The National Assembly will review it on October 22, and the constitutional reform must be adopted by year's end. An interministerial mission led by Claire Durrieu is working in Nouméa on economic model refoundation, aiming for urgent measures to boost activity and structural reforms.
Key local demands include converting the 1 billion euro state-guaranteed loan (PGE) into a subsidy. Government President Alcide Ponga signed the second tranche of 240 million euros on Tuesday, following 560 million in March, conditioned on fiscal reforms passed by Congress in August amid tension.
The plan calls for 160 million euros in savings over three years, including 27 million from family allowances, tax exemptions for new businesses, and a 10-point cut in corporate tax. The FLNKS and other movements call it 'inequitable.' Pierre-Chanel Tutugoro, UC-FLNKS group president in Congress, declined invitations to meetings and presented counter-proposals. 'The only responsible and equitable path is to increase public revenues,' he said, proposing a 'country law' for a solidarity tax on assets over 840,000 euros. In 2019, per ISEE, the top 20% held 44% of income versus 5% for the bottom 20%, inequalities worsened by the riots.