Boric asks to “get out of the trenches” in 2024 and reach tax and pension agreements

Santiago de Chile, Dec 31 (EFE).- The president of Chile, Gabriel Boric, asked the political class this Sunday to “get out of the trenches” and “reach important agreements for the benefit of citizens,” such as the reform of the pensions and a new fiscal pact, two of its star projects.

“If in politics we are able to get out of the trenches and listen to each other, dialogue, and put the country and its people above any consideration, I am sure that we can reach important agreements that will benefit you,” said the president. in his end-of-year message on the national network.

Boric, who reviewed some of the achievements of his first two years in office, assured that “Chile asks us all for generosity, greatness and high-mindedness” and that “people expect solutions from politics, not pettiness or fights.” “.

After 55.7% of Chileans rejected a second proposal to replace their Constitution in a plebiscite on December 17 and the closure of the constitutional debate, the Government – which does not have a majority in Parliament – reopened the debate on its two star renovations.

Both the traditional right united in the Chile Vamos coalition and the far-right Republican Party have systematically opposed raising taxes and reforming the criticized pension system, which is individually funded and implemented during the dictatorship of Augusto Pinochet (1973-1990).

However, in recent days sectors of Chile Vamos have shown signs of reconsidering their position.

“Let us make the effort so that this 2024 is remembered as the year in which we finally achieved a significant increase in the pensions of the elderly. Let us agree on a fiscal pact that allows us to grow, generate more jobs and investment and have permanent and responsible the necessary resources to provide better health, care and security,” he added.

After the Chamber of Deputies of Chile rejected an ambitious tax reform last March, dealing a hard blow to the president, the Government reduced its collection goal in six years to 2.7% (close to 8,000 million dollars). and began a round of conversations with businessmen and parliamentarians to try to move forward with the fiscal pact incorporating more transversal aspects.

Last week, the Executive also presented changes to its pension proposal, with which it seeks to increase the contribution from the current 10% to 16%, borne by the employer.

The main point of friction with the opposition is the destination of that additional 6%.

Pensions have been among the main concerns of Chileans for years and previous governments have tried without success to reform the system, one of the main demands in the wave of protests in October 2019.