by Richard Sanders, Staff Writer
Nicole Moreau, president of the small and medium business federation (CPME-NC), has issued a warning about a “monumental social crisis” approaching in New Caledonia. She stated that the aftermath of the riots earlier this year has created not only human and economic issues but also social challenges.
“Nine hundred businesses have completely vanished, leaving around 25,000 employees unemployed,” she told France Culture on Wednesday. Moreau emphasized that most small and medium enterprises have received little to no reimbursement from insurance companies, unlike larger firms, which have managed to secure compensation for their losses.
Following the riots in May, insurance companies have eliminated any coverage related to riots and civil unrest from their policies. In the public works sector, Benoît Meunier, president of the BTP Federation, reported at a news conference that 80% of companies in this sector have ceased operations. He highlighted the financial struggles of local governments, urging France to inject funds to revive the construction of public infrastructures like schools, and called for a clear timeline for action, expressing frustration over the lack of visible progress despite numerous announcements.
New Caledonia’s President Louis Mapou recently returned from a ten-day trip to Paris, where he led a bipartisan delegation. He met with French President Emmanuel Macron and received commitments from Prime Minister Michel Barnier and other officials, including a proposed credit line of up to one billion Euros for France’s 2025 budget, pending approval amidst political instability.
Critics of Mapou’s PS2R (salvage, reconstruction, and recovery plan) argue that French aid should prioritize non-repayable grants instead of loans, which could exacerbate New Caledonia’s debt issues. Additionally, some politicians have raised alarms about potential “hunger riots” stemming from the ongoing economic crisis and significant revenue declines.
