New Caledonia is a French sui generis collectivity with a system of government based on parliamentarism and representative democracy. The President of the Government is the head of government, and there is a multi-party system, with Executive power being exercised by the government. Legislative power is vested in both the government and the Congress of New Caledonia. The judiciary is independent of the executive and the legislature.
Article 77 of the Constitution of France and the Organic Law 99-209 confers a unique status of New Caledonia between that of an independent country and a regular collectivité d'outre-mer or overseas collectivité of France. A territorial congress and government have been established, and the 1998 Nouméa Accord organized a devolution of powers. Key areas such as taxation, labor law, health and hygiene and foreign trade are already in the hands of the Congress. Further powers will supposedly be given to the Congress in the near future.
Under article 4 of the Organic Law 99-209 a New Caledonian "citizenship" has also been introduced: only New Caledonian "citizens" (defined by article 188) have the right to vote in the local elections. This measure has been criticized, because it creates a second-class status for French citizens living in New Caledonia who do not possess New Caledonian "citizenship" (because they settled in the territory recently). New Caledonia is also allowed to engage in international cooperation with independent countries of the Pacific Ocean. Finally, the territorial Congress is allowed to pass statutes that are contrary to French law in a certain number of areas.