New Caledonia declared a 'state' within French Republic

France on Saturday announced a historic deal with New Caledonia in which the South Pacific overseas territory will be declared a new state. The 13-page accord, reached after negotiations in Paris, proposes the creation of a State of New Caledonia, within the French Republic, inscribed in the French constitution, and the creation of a Caledonian nationality alongside French nationality. The deal also calls for an economic and financial recovery pact that would include a renewal of the territory’s nickel processing capabilities. The agreement hailed by French President Emmanuel Macron as historic still needs final approval in New Caledonia. President Macron had called for talks to break a deadlock between forces loyal to France and those wanting independence, asking New Caledonian elected officials, as well as political, economic and civil society leaders to gather near Paris to hammer out a constitutional framework for the territory.

After 10 days of talks, the parties agreed that a "State of New Caledonia" should be created. The archipelago is to retain "a status within France, with Caledonians who will remain French", said Nicolas Metzdorf, an anti-independence deputy. The priority now was New Caledonia's economic recovery after last year's violence that killed 14 and is estimated to have cost the territory two billion euros ($2.3 billion), shaving 10 percent off its gross domestic product (GDP), he said.

The accord may face a vote by New Caledonians in February. France colonised the Pacific archipelago in the 1850s, and it became an overseas territory after World War II, with French citizenship granted to all Kanaks in 1957. The last independence referendum in New Caledonia was held in 2021. Home to around 270,000 people and located nearly 17,000 kilometres (10,600 miles) from Paris, New Caledonia is one of several overseas territories that remain an integral part of France.It has been ruled from Paris since the 1800s, but many indigenous Kanaks still resent France's power over their islands and want fuller autonomy or independence.