France has unveiled a landmark agreement with New Caledonia, granting the South Pacific territory the status of a new state within the French Republic while addressing decades of political tensions and recent deadly unrest.

The deal, which was described as “historic” by President Emmanuel Macron, follows 10 days of intensive negotiations near Paris involving New Caledonian leaders, French officials, and representatives from political, civil, and economic sectors.

The accord proposes establishing a “State of New Caledonia” enshrined in France’s constitution, balancing greater autonomy with continued ties to Paris. Macron, posting on X, called it a “bet on trust” that opens “a new chapter” for New Caledonia’s future in a peaceful relationship with France. French Overseas Minister Manuel Valls hailed the agreement as an “intelligent compromise” that strengthens New Caledonian sovereignty while preserving its place within the Republic.

A key provision restricts voting eligibility to residents who have lived in New Caledonia for at least 10 years, addressing concerns from the indigenous Kanak population about demographic and electoral shifts. This issue sparked violent clashes in May 2024, which left 14 dead after plans to expand voting rights to long-term non-indigenous residents. The agreement also introduces a “New Caledonian nationality” alongside French citizenship, reflecting greater self-determination.

The deal aims to support economic recovery in the archipelago, home to 270,000 people, which suffered €2 billion (£1.7 billion) in losses—roughly 10% of its GDP—due to last year’s violence. Investments in New Caledonia’s vital nickel industry are central to the recovery package. French Prime Minister Francois Bayrou called the agreement “historic in dimension,” though it still requires approval from France’s parliament and ratification by New Caledonians in a 2026 referendum.

New Caledonia, under French control since the 19th century, has seen three independence referendums since 2018, all favoring continued ties with France. The 2021 vote was boycotted by pro-independence Kanak groups due to the COVID-19 pandemic’s impact.

The new agreement seeks to stabilize relations and prevent further unrest, marking a significant shift in France’s approach to its overseas territories. The French parliament is set to debate the accord in late 2025. (ILKHA)