President José Antonio Kast signed the "National Reconstruction Plan" bill this Wednesday at La Moneda Palace, kicking off a complex legislative battle in the Chamber of Deputies. The initiative, which outlines 43 distinct measures, aims to reverse the country's current economic stagnation through tax adjustments, streamlined permitting processes, and dedicated funding for areas devastated by wildfires in Valparaíso, Ñuble, and Biobío.
During the ceremony, the President urged lawmakers not to reject the idea of legislating before reviewing the technical details of the text. "The worst way to legislate in this case is to oppose the idea of legislating without having first understood the bill itself," Kast stated, according to reports from La Tercera. The Government aims to have the bill passed by September at the latest, though it acknowledges that a lack of sufficient support will require intensified negotiations, particularly with the People's Party (PDG).
A shift in economic strategy
The bill proposes a gradual reduction of the first-category tax, lowering it from 27% to 23%, along with the implementation of a tax credit for SMEs. Finance Minister Jorge Quiroz defended these measures as a necessary response to years of economic "decline" and lack of competitiveness. "We are facing growth rates that do not generate future expectations," Quiroc told La Tercera, adding that the plan also includes cuts to spending he described as "superfluous, unnecessary, and at times scandalous."
President Kast referenced former President Ricardo Lagos to frame his political priority. "Years ago, he said that the number one task is to grow; everything else is just music. Today, I would like to complement that by saying: the number one task is to generate employment; the rest is just music," the Head of State noted, according to CNN Chile. The President warned that the country is facing a youth unemployment rate of 22%, with more than 800,000 people actively seeking work.
The bill's progress through Congress is already causing friction. Republican Deputy Agustín Romero, Chair of the Finance Committee, told Radio 13 C that he intends to accelerate the timeline, even suggesting work during the district week to vote on the initiative before May 21. Meanwhile, Housing Minister Iván Poduje called for a "Republican perspective" to address the housing emergency, warning that his ministry's regular resources are nearly exhausted, as reported by La Tercera.
The day was also marked by other legislative and diplomatic developments. The Chamber of Deputies passed the "Protected Schools" bill with 103 votes in favor and 43 against; the bill will now move to the Senate. The initiative, which includes backpack inspections and penalties for class disruptions, faced opposition from sectors of the Broad Front and the Communist Party, specifically regarding a clause that would bar university free tuition for five years to those convicted of serious crimes, El Mostrador reported. Concurrently, former President Michelle Bachelet defended her candidacy for the UN Secretary-General position before 193 member states, advocating for a more balanced and effective multilateral system in the face of current global conflicts.
