The New Caledonian government has decided that a special commission be set up to reform the economy.
It says the commission will be chaired by the president of the Congress and include members of all political parties, the executive, the French state and unions.
It says the commission's tasks involve modernising the economy and lowering the cost of living.
In May, thousands of people joined a rolling three-day territory-wide strike to demand immediate structural reforms and lower prices .
The strike was organised by a union umbrella group, which this week called off a demonstration planned for Friday when the French president, Nicolas Sarkozy, arrives in Noumea.
One of the union leaders has welcomed the government moves, saying it's incredible how things speed up when the President is due to arrive.
