The New Caledonian government has collapsed after one of the anti-independence factions in the territorial Congress refused to back fiscal reforms aimed at shoring up social security.
The Caledonia Together Party has quit the collegial government formed after the elections in May, saying it cannot accept the stance taken by the Front For Unity, which is close to France's opposition UMP Party.
The Front said the proposed fiscal approach was the same as in France and it rejects it.
Before Monday's Congress meeting, the Caledonia Together Party had already warned that it would resign from the collegial government.
The collapse of the government also ends the deal struck after the election when the three anti-independence groups agreed on a power-sharing arrangement for the running of the Congress, the territorial government and the economically dominant southern province.
The pro-independence opposition's Roch Wamytan predicted the fall of the government, which has been led by Cynthia Ligeard.
Mr Wamytan says there is too much hate within the anti-independence camp and apart from wanting to stay with France, they cannot agree on anything.
The Congress is expected to elect a new government on December the 31st.