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New Caledonia rejects independence from France

The South Pacific territory of New Caledonia chose to remain French on Sunday, narrowly rejecting independence in a tightly-fought referendum marked by a high turnout.

Published: 4 October 2020 15:29 CEST
New Caledonia rejects independence from France
A person picks up a voting form at a polling station in the referendum on independence on the French South Pacific territory of New Caledonia in Noumea on October 4, 2020. AFP

The vote rejecting a breakaway from France after almost 170 years came in at 53.26 percent, according to final results, down from 56.7 percent in a referendum two years ago.

French President Emmanuel Macron — who had said previously that “France would be less beautiful without New Caledonia” — on Sunday said he was grateful to the archipelago's voters.

'Gratitude', 'humility'

“I welcome this sign of confidence in the republic with a profound sense of gratitude,” Macron said from his office.

He added that he also felt “humility” at the outcome which showed a clear progression of the pro-independence vote compared with the independence referendum in 2018.

A ballot box at a polling station in the referendum on independence on the French South Pacific territory of New Caledonia in Noumea on October 4, 2020. Theo Rouby / AFP

Sunday's referendum was part of a carefully negotiated decolonisation plan agreed in 1998 which ended a deadly conflict between the mostly pro-independence indigenous Kanak population and the descendants of European settlers.

That violence culminated in a bloody, drawn-out hostage crisis in 1988 that saw 19 separatists killed, along with six police and special forces personnel.

Another referendum can be held by 2022 so long as the poll is requested by at least a third of the local legislature.

Most political observers had forecast a win for the no-vote as well as a narrower margin.

Turnout was 85.64 percent, more than four points higher than last time, as the prospect of a tight race brought voters out in droves, patiently awaiting their turns at polling stations.

“I waited 45 minutes. It's very important for me to vote,” said retiree Germaine Le Demezet in the capital Noumea.

People wait in line to cast their vote in the referendum on independence on the French South Pacific territory of New Caledonia, in Noumea on October 4, 2020. Theo Rouby / AFP

READ ALSO: Five things to know about the far-flung French territory holding an independence referendum

'We need to know'

“I have children and grandchildren here, the future needs to be clear and we need to know what's going to happen to us.”

New Caledonia has taken strict measures to keep the coronavirus out of the territory, and with case numbers low, the referendum took place without masks and other measures.

A man casts his vote at a polling station. Theo Rouby / AFP

New Caledonia, situated between Australia and Fiji and sometimes called “The Pebble”, was seized by France in 1853 and is home to 270,000 people.

The economy's mainstays are the production of metals, especially nickel of which New Caledonia is a major global producer, as well as tourism and financial support from mainland France.

A view of New Caledonia, AFP.

The French government, from more than 16,000 kilometres (10,000 miles) away, subsidises the territory with around 1.5 billion euros ($1.75 billion) every year, the equivalent of more than 15 percent of New Caledonia's gross domestic product.

A special authorisation allowing the French national flag to be used in campaign spots angered the pro-independence Kanak and Socialist National Liberation Front (FLNKS), which accused Paris of taking sides against independence. The last colonies to gain independence from France were Djibouti in 1977.

 

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ECONOMY

S&P downgrades French credit rating in blow to Macron

Ratings agency Standard & Poor's downgraded France's credit score on Friday citing a deterioration in the country's budgetary position, a blow to Emmanuel Macron's government days before EU parliamentary elections.

Published: 1 June 2024 15:44 CEST
S&P downgrades French credit rating in blow to Macron

In a statement, the American credit assessor justified its decision to drop France’s long-term sovereign debt rating from “AA” to “AA-” on concerns over lower-than-expected growth.

It warned that “political fragmentation” would make it difficult for the government to implement planned reforms to balance public finances and forecast the budget deficit would remain above the targeted three percent of GDP in 2027.

The S&P’s first downgrade of France since 2013 puts the EU’s second-largest economy on par with the Czech Republic and Estonia but above Spain and Italy.

The announcement will sting for Macron, who has staked a reputation as an economic reformer capable of restoring France’s accounts after low growth and high spending.

The risk of a ratings downgrade had been looming for several quarters, with the previous “AA” assessment given a “negative outlook”.

The surprise slippage in the public deficit for 2023 to 5.5 percent of Gross Domestic Product (GDP) instead of the expected 4.9 percent did not play in the government’s favour.

France’s general government debt will increase to about 112 percent of GDP by 2027, up from around 109 percent in 2023, “contrary to our previous expectations”, the agency added.

Responding to the downgrade decision, Economy Minister Bruno Le Maire reaffirmed the government’s commitment to slashing the public deficit to below three percent by 2027.

“Our strategy remains the same: reindustrialise, achieve full employment and keep to our trajectory to get back under the three percent deficit in 2027,” he said in an interview with newspaper Le Parisien, insisting that nothing would change in the daily lives of the French.

Le Maire claimed the downgrade was primarily driven by the government’s abundant spending during the Covid pandemic to provide a lifeline to businesses and French households.

The main reason for the downgrade was because “we saved the French economy,” he said.

Government critics offered a different rationale.

“This is where the pitiful management of public finances by the Macron/Le Maire duo gets us!” Eric Ciotti, head of the right-wing Republicans party, wrote on social media platform X.

Far-right leader Marine Le Pen called the Macron administration’s handling of public finances “catastrophic” and denounced the government as being “as incompetent as they are arrogant”.

A credit downgrade risks putting off investors and making it more difficult to pay off debt.

Earlier this year, influential ratings agencies Moody’s and Fitch spared handing France a lower note.

S&P also maintained its “stable” outlook for France on Friday on “expectations that real economic growth will accelerate and support the government’s budgetary consolidation”, albeit not enough to bring down its high debt-to-GDP ratio.

“S&P’s downgrading of France’s debt simply reflects an imperative that we are already aware of: the need to continue restoring our public finances,” Public Accounts Minister Thomas Cazenave wrote in a statement sent to AFP.

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