New Caledonia, France Reach Expanded Autonomy Deal

France and New Caledonia have reached a historic agreement to establish a 'State of New Caledonia' within the French Republic, granting the territory expanded autonomy and a distinct local nationality in addition to French citizenship. The deal, detailed in a 13-page accord, allows for greater local powers, increased control over international relations, and the possibility of transferring further sovereign powers in the future. Economic recovery measures, particularly for the vital nickel sector, are central to the agreement, following deadly riots in May 2024 that exposed deep divisions over proposed electoral reforms. The accord still requires approval from New Caledonia's population, likely via referendum, and ratification by the French parliament. While the agreement stops short of full independence sought by many indigenous Kanaks, both pro- and anti-independence parties view it as a significant compromise. The deal also raises the prospect of future international recognition for New Caledonia.