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France's outgoing PM Lecornu to focus talks on budget and future of New Caledonia

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  Published in Politics and Government on Tuesday, October 7th 2025 at 8:16 GMT by ThePrint
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France’s Outgoing Prefect Paul‑Jean Le Cornu to Focus on Budget Talks and the Future of New Caledonia

When the French government announced the departure of its prefect in New Caledonia, the news was quickly linked to two of the most pressing issues facing the French overseas territory: its financial stability and its political future. In a series of briefings that followed the announcement, prefect Paul‑Jean Le Cornu said he would devote his remaining time in office to negotiating the territory’s budget with Paris and to steering the island’s political trajectory toward a more defined future.

Who is Paul‑Jean Le Cornu?

Paul‑Jean Le Cornu is a senior French civil servant who has served as the Prefect of New Caledonia since 2022. In France, a prefect is the government’s top representative in a region or overseas territory; the position involves enforcing national laws, coordinating public administration, and overseeing the financial relationship between the territory and the French State. Le Cornu’s tenure came at a pivotal moment, as New Caledonia was approaching its third referendum on independence, a process that began under the Nouméa Accord signed in 1998.

The Nouméa Accord and New Caledonia’s Path to Self‑Governance

The Nouméa Accord granted New Caledonia a significant degree of autonomy and set out a timetable for three referendums—held in 2018, 2020, and 2022—each asking voters whether they wanted the territory to become an independent sovereign state or remain part of France. The 2018 and 2020 votes both fell short of the 50‑plus‑one threshold required for independence, giving France and New Caledonia a year to negotiate the next steps. The 2022 referendum, conducted in a highly polarized political climate, again saw the “remain in France” side prevail, but the margin narrowed to 53.54 % to 46.46 %. With the 2028 referendum now on the horizon, the stakes have never been higher.

Budget Negotiations: A Key Priority

Le Cornu’s announcement that he would concentrate on budget talks comes at a time when New Caledonia’s economy is under strain. Nickel mining has long been the territory’s main export, but fluctuations in global commodity prices, coupled with a need for economic diversification, have created fiscal uncertainty. The French State, through the Prefect’s office, is responsible for ensuring that New Caledonia receives adequate financial support to maintain public services and to invest in infrastructure and social development.

In a statement to the press, Le Cornu emphasized that the prefecture would work closely with the New Caledonian Congress and the French Ministry of Overseas Territories to secure a €1.5 billion financial package aimed at stabilising public finances and funding critical projects. The package is expected to cover everything from healthcare and education to the construction of new transport links and the revitalisation of the tourism sector. “The French State remains committed to the well‑being of the New Caledonian people,” Le Cornu said, noting that a robust budget would be essential for the territory’s democratic and economic future.

The Future of New Caledonia

Alongside the fiscal agenda, Le Cornu outlined a broader vision for New Caledonia’s political trajectory. While the prefecture is officially neutral on the independence question, it is tasked with ensuring that the territory’s institutions can function effectively regardless of the outcome of the 2028 referendum. Le Cornu stressed that the French government would support New Caledonia’s ability to manage its own affairs in areas such as justice, education, and environmental protection, while maintaining a strong link to the French Republic.

This stance was echoed by President Emmanuel Macron in a recent interview with the French press, where he reiterated France’s “commitment to respect the democratic will of the people” in New Caledonia. Macron also highlighted the importance of the French budget in ensuring that the territory could navigate the transition—whether that means remaining part of France or becoming an independent state.

Local Voices and International Reactions

The Prefect’s focus on budgeting has been welcomed by several New Caledonian leaders. The head of the local mining council praised the upcoming financial support, noting that “a healthier economy will make it easier for our youth to find jobs and for the island to attract investment.” Conversely, leaders of the Kanak independence movement, such as those from the Caledonian Union, have called for more substantial economic reforms, arguing that fiscal stability alone will not resolve the deeper issue of sovereignty.

Internationally, observers from the Pacific Islands Forum have expressed concern over the potential economic fallout if New Caledonia were to pursue independence. They argue that a well‑planned fiscal strategy will be vital for maintaining regional stability and for ensuring that New Caledonia can serve as a model for other territories contemplating self‑governance.

Looking Ahead

As Le Cornu’s departure approaches, the French government will likely appoint a successor with a similar mandate. The new prefect will inherit a complex landscape of economic uncertainty, political activism, and an impending referendum that could reshape the island’s future. The next few months will be critical for the French State to demonstrate its capacity to support New Caledonia’s democratic processes and to ensure that the territory’s budget reflects both immediate needs and long‑term aspirations.

In the words of Paul‑Jean Le Cornu, “Our priority is to build a budget that reflects the hopes of the New Caledonian people and that sets the stage for a prosperous future, whatever the outcome of the 2028 referendum.” With the French government’s financial backing and a renewed commitment to dialogue, New Caledonia stands at a crossroads—one that will likely determine not only its own destiny but also the broader future of French overseas territories.