France and rival political factions from the South Pacific territory of New Caledonia signed a long-sought accord on 12 July after ten days of negotiations near Paris. President Emmanuel Macron hailed the deal as a “historic” step toward ending decades of tension that flared into deadly riots last year. The 13-page agreement would create a “State of New Caledonia” enshrined in the French Constitution while keeping the archipelago within the republic. It introduces a Caledonian nationality alongside French citizenship, expands voting rights to anyone who has lived on the islands for at least ten years, and allows the territory to gain greater control over diplomacy, security, justice and monetary policy in stages. The text also promises a financial recovery pact, including a plan to restart nickel processing, after unrest in May 2024 left 14 people dead and inflicted an estimated €2 billion in damage. Implementation still requires a constitutional amendment by France’s Parliament—expected to sit in joint session late this year—followed by a referendum of New Caledonian voters targeted for February 2026. While Macron, Overseas Minister Manuel Valls and pro-French loyalists praised the compromise, some independence activists and French opposition figures, including Marine Le Pen, criticised provisions on sovereignty and economics, signalling that the agreement’s passage is not yet assured.