France pledges additional aid to stabilize New Caledonia's finances
French Prime Minister Sébastien Lecornu announced new financial support for New Caledonia to address its pension and healthcare crises and help balance upcoming budgets.
Prime Minister Sébastien Lecornu disclosed a fresh financial package for New Caledonia after a lengthy meeting with a cross-party delegation headed by President Milakulo Tukumuli. The assistance is intended as a lifeline for the territory’s pension and medicare systems, both described as near collapse, and to fund the €11 million deficit for the 2026 fiscal year and the €50 million shortfall for the 2027 budget. Most of the support will be in the form of grants, with officials also requesting that existing loans be turned into non-refundable aid, given the €1.5 billion debt accrued since 2020.
New Caledonia has suffered severe economic damage from the May 2024 unrest, including 14 deaths, €2 billion in material losses, a 13.5 percent GDP decline and over 12,000 unemployed. Final approval depends on the French Parliament’s 2027 budget deliberations.
