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New Caledonia Faces Deepening Crisis After Failed Negotiations on Institutional Future

A year after deadly riots, political stalemate persists, economic collapse worsens, and elections loom without resolution on voter eligibility.

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Overview

  • Negotiations led by French Overseas Minister Manuel Valls ended without consensus on New Caledonia's institutional status after a three-day conclave in early May 2025.
  • The territory's economy remains in severe distress, with a GDP contraction of 10–15% in 2024, unemployment affecting up to 15,000 people, and public debt reaching 500% of GDP.
  • The May 2024 riots, which resulted in 14 deaths and €2 billion in damages, exacerbated long-standing ethnic and social divisions and deepened political fragmentation.
  • Both pro-independence and loyalist factions are internally divided, complicating efforts to build consensus on key issues like voter eligibility and governance.
  • Provincial elections are set to occur before November 2025, but the unresolved voter roll continues to fuel tensions and uncertainty about the territory's future.