by Tusi Tala, Staff Writer
The French government is introducing a new financial aid package of approximately €130 million to support New Caledonia’s economy. This funding aims to provide urgent assistance to prevent critical services, such as the main electricity provider ENERCAL and social services, from facing imminent collapse, according to a release from the French Ministry of Finance on Wednesday.
This financial support will ensure that these essential services can continue to operate at least through September.
This aid follows nearly three months after violent riots in New Caledonia resulted in the destruction and looting of around 800 businesses, leading to an estimated 20,000 job losses, 11 fatalities, and an overall economic impact of roughly €2.2 billion.
With this new package, the total assistance from the French government has reached €400 million, not including specific aid for the troubled nickel industry in New Caledonia.
In late July, €100 million was allocated to the local government to help those who lost their jobs due to the riots. However, unlike earlier support, this new package will be contingent on implementing reforms in critical sectors, including the ENERCAL power supply company and the social security and retirement systems, as emphasized by the French government.