France Pledges Fresh Aid to New Caledonia After Talks With Territory's Leader

French Prime Minister Sébastien Lecornu has announced additional financial assistance for New Caledonia, the financially embattled French Pacific territory, following a three-hour meeting this week with a bipartisan delegation led by New Caledonia's President Milakulo Tukumuli. Lecornu said the aid would serve as a "lifebuoy" to help New Caledonia overcome its most urgent challenges, including a near-collapse of the territory's pension scheme and medicare, both described as being on the verge of collapse. The assistance is also intended to help New Caledonia conclude its 2026 financial year (€11 million) and balance its 2027 budget (€50 million).

A major part of the announced assistance was quoted as amounting to €400 to 600 million. Lecornu also discussed consultations to coordinate the package's implementation during a "Prime Minister's mission" team at a date yet to be determined. Since his election in July 2026, Tukumuli has expressed serious concerns regarding New Caledonia's financial situation and the risk of what he termed a shutdown. He also voiced concerns over New Caledonia's high level of debt, following loans contracted with the French government as a result of the Covid crisis and, more recently, the civil unrest that took place in May 2024. The announcement follows a three-hour meeting with a bipartisan delegation led by New Caledonia's President Milakulo Tukumuli this week.