France has unveiled a landmark agreement with New Caledonia, a South Pacific overseas territory, where the archipelago will be declared a new state while remaining within the French fold. The 13-page accord, reached after negotiations in Paris between the French government and groups on both sides of the territory’s independence debate, proposes the creation of a “State of New Caledonia” with its own nationality.
“A State of New Caledonia within the Republic: it’s a bet on trust,” French President Emmanuel Macron posted on X, emphasizing the need for “respect, stability, and goodwill to build a shared future”. Under the agreement, New Caledonia would immediately control its foreign policy and could potentially put the transfer of additional sovereign powers over defense, currency, security, and justice to a public vote. This move could pave the way for New Caledonia to become a member state of the United Nations.
The agreement comes after a year of political unrest and deadly separatist violence in the Pacific archipelago. Unrest broke out in May 2024 when Paris proposed a law allowing thousands of non-Indigenous long-term residents living in the territory to vote in provincial elections. This move was seen as a threat to the Kanak population’s influence and their chances of winning independence. Kanaks, who make up about 40% of the territory’s population of nearly 300,000, feared the move would leave them in a permanent minority.
The accord will establish a “State of New Caledonia” within the French Republic, granting it a unique status. Residents will have the option to hold dual French and Caledonian citizenship. New Caledonia will gain control over its foreign policy, and the territory can hold a public vote regarding the transfer of further sovereign powers related to defense, currency, security, and justice.
Emmanuel Tjibaou, a Kanak lawmaker who participated in the talks, stated that the agreement will help “us get out of the spiral of violence”. Nicolas Metzdorf, a lawmaker in favor of remaining in the French fold, described the compromise deal as born of “demanding dialogue” and characterized Caledonian nationality as a “real concession”.
Both chambers of France’s parliament will meet in the fourth quarter of this year to vote on approving the deal, which will then be submitted to New Caledonians in a referendum in 2026. Manuel Valls, France’s minister for overseas territories, called the agreement an “intelligent compromise” that maintains links between France and New Caledonia while granting more sovereignty to the Pacific island.
The deal also includes plans for an economic and financial recovery initiative aimed at revitalizing the territory’s nickel processing industry. The violence in May 2024, which claimed 14 lives, is estimated to have cost the territory €2 billion, shaving 10% off its gross domestic product (GDP).