(MENAFN) France has pledged to give more autonomy to its Pacific territory of New Caledonia, though it stopped short of granting the full independence sought by parts of the indigenous Kanak community. The agreement comes in the wake of last year’s violent unrest, sparked by proposed changes to voting rights, which resulted in 14 deaths and caused around €2 billion ($2.3 billion) in damages.

The deal, signed Saturday at the Elysee Palace in Paris, will establish New Caledonia as the “State of New Caledonia,” with this new status formally recognized in the French Constitution. Residents will receive a new nationality status in addition to their French citizenship, and the agreement leaves open the possibility of international recognition for the territory in the future.

A financial recovery plan is also part of the agreement, focusing on reviving the local economy, including efforts to rejuvenate New Caledonia’s nickel industry, according to excerpts cited by the Associated Press. France’s Parliament is expected to pass the agreement in late 2025, with a referendum planned in New Caledonia for 2026.

French President Emmanuel Macron described the accord as “a bet on trust,” writing on X that he hopes it will foster unity and stability. Kanak lawmaker Emmanuel Tjibaou said the agreement offers a path to escape the “spiral of violence.”

New Caledonia, home to about 270,000 people, has been a French colony since the 19th century and has witnessed a long-running independence movement since the 1980s. Three referendums held between 2018 and 2021 rejected independence, though the final vote was boycotted by pro-independence groups over the impact of the Covid-19 pandemic on the Kanak population.

Tensions reached a peak in May 2024 when Paris proposed extending voting rights to thousands of long-term, non-indigenous residents. Kanak leaders argued this would entrench their minority status and end any hope of future sovereignty. The new agreement restricts voting rights to those who have lived in the territory for at least ten years.

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