To deal with the crisis that broke out in mid-May in the archipelago, the government has disbursed 130 million euros in additional aid to businesses and public services in New Caledonia. “This state aid will notably help finance the operation of public services (health, electricity) and the payment of social benefits in September.”The Ministry of Economy announced on Wednesday, September 4. Bercy specifies in a statement that its payment will be conditional “the adoption of reforms to improve New Caledonia’s economic and social model”.
The new aid package brings state support to New Caledonia to 400 million euros, excluding support for the nickel industry, following the unrest that devastated the territory and destroyed its economic fabric, the statement added.
In detail, “if the conditions set by the State are respected”will pay €48.4 million in repayable advances to the New Caledonian community, including €41.9 million to finance the local health insurance system and €4.8 million to prevent the electricity system operator Enercal from defaulting.
One in five employees is unemployed
While 100 million euros had already been paid to the New Caledonian government at the end of July to finance partial unemployment coverage, an additional 61.4 million euros will be released in September and October to finance it. According to local government figures, destruction, looting and fires have caused damages of at least 2.2 billion euros and almost one in five employees is totally or partially unemployed.
At the end of August, the Congress of New Caledonia adopted a resolution calling for massive state support of 500 billion Pacific francs (around 4.2 billion euros) to rebuild the archipelago. At the same time, the local government has begun public consultations before drawing up a recovery plan. “save, rebuild and rebuild” with the aim of changing the economic and social model of New Caledonia.
On Tuesday, the loyalist leader and president of the South province – the richest and most populous in New Caledonia – Sonia Backès, was welcomed at the Elysée Palace by Emmanuel Macron. “As for the economy, we discussed the need to move very, very quickly to a phase of massive public investment to restart the economic machine. [Le chef de l’Etat] He told me that he shared this vision of things.”he said after the meeting.
