The Government worked hard to shape the guidelines for the pension reform project being discussed in the Senate's working committee. The design on which work is being done would originate from ChileVamos as a counter-proposal to the proposals presented by the opposition towards the end of July. The distribution of the 6% additional contribution is being considered: allocating 2% to individual accounts, 2% to savings and 2% to insurance. The latter would include longevity coverage, with the aim of ensuring the pension of those who survive the most in the mortality tables.
Category: Public policy
Information related to political affairs that have an impact on Chile’s economic development.
President announces that Budget 2021 will expand 9.5%
President Sebastián Piñera announced that the 2021 Budget will have a total expenditure of $73,234 million, which means a growth of 9.5% compared to this year's budget. It also incorporates an increase of 14.9% in public investment. The president said that this year's budget "will be the budget for employment and recovery in order to create jobs, meet the main needs of Chileans, reactivate the economy and put our country in full swing."
Chile introduces new rules that allow energy communities
The Chilean government has published new rules for distributed generation, self-consumption solar systems which include the option of creating energy communities. The provisions, which will come into effect on November 6, will introduce the possibility of systems with a generation capacity no larger than 300 kW to supply power for multiple consumers. Such energy communities will enable users to co-ordinate a shared PV array with a single grid connection to inject surplus power back into the electricity network.
President Piñera announces extension of IFE for two months to benefit 8 mn people
President Sebastian Piñera announced the extension of the Emergency Family Income (IFE) for two more months, to mitigate the economic impact that families have lived due to COVID-19. The President says "This will benefit more than 8 million people."
Chile announces $2 bn plan to bring back jobs lost due to COVID-19
Chilean President, Sebastián Piñera, announced a $2 billion plan to subsidize the recovery or creation of jobs lost due to the application of restrictive measures to curb the coronavirus pandemic. The government will pay up to 50%, capped at about $317, of the salaries of newly hired workers and will cover up to about $200 of the salary of employees who return to their jobs after a period of suspension.
Chile refuses to sign Escazú Agreement
Chile decided not to sign the Escazú Agreement, which guarantees the protection of environmental rights in Latin America, despite being one of its promoters together with Costa Rica. According to Foreign Minister Andrés Allamand, “The agreement exposes the country to the contingency of international demands for environmental reasons, which from our point of view, particularly considering the terms of this treaty, implies a serious impact on sovereignty in matters that are fundamental for development.”
Government rejects second withdrawal of 10% before being considered by Congress
Next Wednesday, the project that seeks to allow affiliates to withdraw 10% of their pension funds for a second time will begin the process in Congress. This was announced by Deputy Pamela Jiles through her social networks, and the Government reiterated its rejection of the idea. According to María José Zaldívar, the Minister of Labor, the reason for this is because before "a huge number of Chileans withdrew all of their savings, therefore, a second withdrawal would not benefit all people."
Environmental Court confirms total and definitive closure of Pascua Lama mining project
The First Environmental Court of Antofagasta confirmed the total and definitive closure of the Pascua Lama mining project by the Canadian company Barrick Gold. Also the court reported that a fine of more than $7 billion will be maintained against the firm. The minister of the First Environmental Court, Mauricio Oviedo, explained that "the ruling reaffirms that Pascua Lama did not fully comply with its Environmental Qualification Resolution which led the SMA to apply various sanctions to the mining company for serious violations."
Government invites bids for 165 construction projects
The Chilean government is inviting bids for 165 projects as part of its plans to reactivate the economy and generate employment. The programme is the second call for tenders as part of the government’s ‘step by step' plan for economic recovery. The new batch of 165 public tenders involves a total investment of almost $400 million.
Chilean truckers end week-long strike on promise of beefed up security
Chilean truckers said they would end a seven-day strike that has damaged supply chains and raised fears for food and commodities exports, following a deal with government. Jose Villagran, vice president of the National Confederation of the Chilean Cargo Transport (CNTC), said the government had pledged to beef up protection for arson attack victims in Chile’s Araucania province, with agreements on “police intelligence” and other unspecified measures.
