Chile’s President Apologizes, Announces Broad Package of Social Measures

RIO DE JANEIRO, BRAZIL – The president of Chile, Sebastián Piñera, delivered a speech on the national TV network on Tuesday night, October 22nd, where he apologized to Chileans for his lack of vision of historical issues.

He announced a number of measures to ease tensions in the country, such as an increase in pensions, the introduction of public assistance on purchasing medicine, a reduction in electricity tariffs and an increase in taxes for the wealthy.

“Faced with the legitimate social needs and demands of citizens, we humbly and clearly embraced the message that the Chileans have sent us. It is true that the problems had been piling up for decades and that different governments were not, nor were we, able to acknowledge this situation in all its magnitude. I acknowledge and apologize for this lack of vision,” Piñera said.

Among the measures announced is the bill that establishes a ceiling on medicine spending by Chilean families. Purchases of amounts exceeding the ceiling will be covered by the state. The president said he will extend the National Health Fund (FONASA) agreement with pharmacies to reduce the price of medicines.

In terms of pensions, the proposal is for a 20 percent increase. According to the government, the measure will benefit 590,000 retirees and 945,000 pensioners. Piñera announced an additional increase in pensions during 2021 and 2022 for people over 75.

The pension system is one of the most dissatisfying points for Chileans. Currently, workers are required to deposit approximately 12 percent of wages in individual accounts controlled by private institutions. Retirees receive half a minimum wage on average.

As for minimum wages, Piñera said he will guarantee a minimum wage of 350,000 pesos (US$482) for full-time workers. When the salary does not reach this amount, the government will complement it.

A further proposal announced was to reduce the salaries of legislators and high-income civil servants. In addition, the president announced a reduction in the number of deputies and a limit on the number of times they may be re-elected.

The wealthy, those with a monthly income in excess of 8 million pesos (approximately US$11,000), will be required to pay 40 percent in taxes. The measure is expected to raise US$160 million, which will be used to finance part of the new measures.

Piñera said he will also establish a stabilization system for electricity tariffs and that he will cancel the latest 9.2 percent increase in the price of electricity.

“This social agenda will not solve all of the Chileans’ problems. But it will be a necessary and significant action to improve their quality of life, particularly in the most vulnerable sectors and the middle class, prioritizing children, women and the elderly”.

He announced a US$350 million plan to repair damage caused by violence and protests in recent days.

The protests continued throughout Monday, almost all of them peaceful. The Chilean police said that about 22,000 people gathered in Plaza Italia, the main area of demonstrations.

By Tuesday night, there were 1,894 people recorded as detained, including 215 minors, as well as 268 peopole hospitalized and 137 injured by firearms. Fifteen deaths have also been confirmed.

The Chilean government has not announced how long the state of emergency and curfew will last.

The Chilean Workers’ Union (CUT) and more than 20 social organizations have called a national general strike for yesterday and today, October 24th.

There was a march from Plaza Italia to Plaza Los Héroes yesterday morning. The protestors called for the retreat of the military from the streets and the lifting of the state of emergency.

Source: Agência Brasil