New Caledonia Faces Crisis: Metallurgical Industries Hardest Hit Amid Political, Economic Struggles

New Caledonia is facing a crisis, both politically and economically. The archipelago has been struggling since mid-May, with clashes between Kanak separatists, loyalists, and law enforcement taking a toll on local businesses. This has led to an economic slowdown, with metallurgical industries being particularly impacted.

Some metallurgical industries have even shut down during the clashes, resulting in significant financial losses for the territory. The Caledonian government has already paid 1.5 billion euros in response to these challenges, but further assistance is needed to address the economic difficulties faced by the territory.

In response to these challenges, the French government has been asked for assistance to help support businesses and individuals affected by the crisis. To do this, the State has established a solidarity fund to compensate for the loss of turnover between May and June. Additionally, a repayable advance of 100 million euros has been made available to the New Caledonian government.

This aid for businesses could total close to 20 million euros, with thousands of small and medium-sized enterprises applying for support through the solidarity fund. However, despite these efforts, around 6,000 jobs have already been lost as a direct result of the crisis, with an additional 15,000 employees expected to be on partial unemployment in the coming weeks. This amounts to 20,000 private sector jobs being affected, which makes up one-third of the jobs in the archipelago prior to the crisis.

The future support from the State will be determined by discussions on