In a landmark decision, France has reached a transformative agreement with New Caledonia, ensuring the Pacific territory remains part of the French Republic while establishing it as a distinct state. The announcement, made on Saturday, follows months of tension sparked by violent separatist unrest in 2024, which claimed 14 lives and inflicted significant economic damage.

The accord emerged from intensive negotiations near Paris, involving New Caledonian elected officials, community leaders, and representatives from political, economic, and civil society sectors. Convened by President Emmanuel Macron to resolve the longstanding divide between pro-France loyalists and independence advocates, the talks culminated in a 13-page framework that redefines the territory’s status.

Under the agreement, New Caledonia will be recognized as the “State of New Caledonia,” a unique entity within France, preserving French citizenship for its residents. “This ensures Caledonians remain French while granting a new status,” said Nicolas Metzdorf, an anti-independence deputy, in a statement to AFP. The deal explicitly rules out further independence referendums, except for one to ratify this agreement, signaling an end to decades of contentious votes.

New Caledonia, a French territory since the 19th century, lies 17,000 kilometers from Paris and is home to approximately 270,000 people. The indigenous Kanak population has long sought greater autonomy or full independence, a aspiration fueled by grievances over French governance. Last year’s violence, triggered by a controversial French plan to extend voting rights to long-term non-indigenous residents, underscored fears among Kanaks of being marginalized in their homeland. The new agreement addresses this by restricting voting eligibility to residents with at least 10 years of continuous residency.

The accord also prioritizes economic recovery following the 2024 unrest, which caused an estimated €2 billion ($2.3 billion) in damages, slashing the territory’s GDP by 10 percent. A key component is a financial and economic recovery pact, including plans to revitalize New Caledonia’s critical nickel industry.

Prime Minister François Bayrou hailed the agreement as “a historic milestone,” though it awaits approval from both chambers of France’s parliament in late 2025 and a public referendum in New Caledonia in 2026. The deal introduces a dual nationality framework, allowing residents to hold both New Caledonian and French citizenship, a move that could gain recognition from other nations.

This agreement marks a significant step toward resolving the political deadlock that has persisted since the 2021 referendum, which pro-independence groups boycotted due to Covid-19’s impact on the Kanak community. As New Caledonia looks toward a stable future, the accord offers a delicate balance between maintaining ties with France and addressing local aspirations for greater self-determination.