New Caledonia's 19th government officially assumed office on Wednesday after finalising ministerial portfolios, immediately facing the challenge of securing €109 million by the end of August to prevent a total collapse of public services. The administration, led by government president Milakulo Tukumuli of the Oceanian Awakening party, inherited a financial crisis worsened by over €2 billion in damages from riots in May 2024 that claimed 14 lives. Tukumuli declared the territory "in a state of cessation of payments," warning that without urgent funding, the local government could cease functioning.
The administration was elected by New Caledonia's Congress on Friday following provincial elections and had previously been limited to routine operations. A meeting on Tuesday between New Caledonian officials and France's Interministerial Mission for New Caledonia (MINC) explored accessing funds from the €432 million "refoundation pact" launched in March, of which €141 million has already been released. MINC director Amaury Decludt stated the remaining funds could be disbursed through state-guaranteed loans or grants, but only if credible reforms are implemented to restore financial autonomy by 2030. He confirmed commercial lenders no longer trust the territory's economy.
Tukumuli assigned himself oversight of external relations, civil security, transport, health, and social protection. Christopher Gygès, the loyalist vice-president, will manage economy, taxation, telecommunications, and customs. Alcide Ponga, former government president, takes charge of mining and energy. A cross-party delegation plans to travel to Paris before August ends to push for faster disbursement.
The government claims it needs €109 million by August's end to avoid collapse, yet expects Paris to release funds only after reforms are enacted—creating a catch-22. If financial markets and banks refuse to lend, the administration's ability to function depends entirely on French goodwill. The timeline for securing funds and implementing reforms remains unclear.
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