The French government has paid out €130 million in additional aid to businesses and public services in New Caledonia in a bid to deal with the crisis that erupted in mid-May.
In a statement released on Wednesday, France's Ministry of the Economy announced: "This State aid will enable us to finance the operation of public services [health, electricity] and the payment of social benefits in September".
The payment is conditional "on the adoption of reforms to improve New Caledonia's economic and social model".
In addition to this latest aid package, State support for New Caledonia since the riots that ravaged the Pacific territory and destroyed its economic fabric amounts to over €400 million.
However the figure doesn't include a bailout for the archipelago's failing nickel industry.
'Conditions' for State aid
In detail, the ministry has stipulated that "if the conditions set by the State are met", France will pay over €48 million to New Caledonia in the form of repayable advances, including almost €42 million euros to finance the local health insurance system and just under €5 million to prevent the electricity system operator Enercal from defaulting on its payments.
While €100 million had already been paid to the New Caledonian government at the end of July to fund short-term unemployment, a further €61 million will be released for that purpose from September to October.
According to local government figures, the destruction, looting and fires have caused over €2 billion in damage, and almost one employee in five is either totally or partially unemployed.
'Rebuilding and reconstruction'
At the end of August, the Congress of New Caledonia assembly adopted a resolution calling for massive state support of 500 billion Pacific francs – just over €4 billion – to rebuild the archipelago.
At the same time, the local government launched public consultations ahead of a "safeguarding, rebuilding and reconstruction" plan aimed at changing New Caledonia's economic and social model.
On Tuesday, Sonia Backès, the loyalist leader and President of the territory's Southern Province – the richest and most populous province in New Caledonia – was received at the Elysée Palace by Emmanuel Macron.
"On the economy, we discussed the need to move very, very quickly to a phase of massive public investment to restart the economic machine. [The Head of State] told me that he shared this vision," she said after the meeting.
