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Minister of Economy of Chile confident about constitutional agreement

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Global companies are looking beyond the twists and turns that occur each week in the talks and are instead focusing on the big picture, optimistic that the parties can reach a deal, Economy Minister Nicolás Grau said in an interview. , 39 years old.

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Of course, this optimistic vision must be fulfilled”, declared Grau, who accompanied President Gabriel Boric on a state visit to Mexico City. “We as a government have high expectations that the political parties based in Congress have the capacity to reach an agreement”.

In September, Chileans overwhelmingly rejected a constitutional proposal that would have strengthened minority rights and environmental protection, while moderating the country’s free-market policies. It was a blow to the Boric government’s plans to fight inequality and ensure social justice.

Since then, the political parties have held discussions on the way forward to amend the Constitution. Negotiations have stalled on issues such as the size and composition of the body that would be tasked with rewriting Chile’s basic laws, and the role of a panel of experts.

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At one point, the Minister of the Interior, Carolina Tohafueled the hopes that an agreement would be reached before September 18, the day on which the Independence of Chili. Two months later, lawmakers told local media this week that it is unlikely they could reach a deal in November.

productivity calendar

Chile needs to take measures to encourage investment. The gross domestic product (GDP) has contracted in two of the last three quarters, while inflation and interest rates remain high.

Boric has responded to the slowdown with targeted aid and new investment incentives that aim to help the economy without putting pressure on consumer prices and the budget. The Administration also sent to Congress its main tax and pension reform proposals.

Looking ahead, the economy and finance ministries are working together on proposals to improve productivity, according to Grau, who is a PhD in economics from the University of Pennsylvania.

Regarding the growing Chilean lithium industry, Grau said the government wants to encourage the production of value-added goods and increase tax revenues from the sector.

The Chilean authorities are looking for a strategic partner for the creation of a state-owned lithium company. A dozen interested companies and countries have already been contacted, Mining Undersecretary Willy Kracht told El Mercurio in September.

The GDP of Chili it will grow between 1.75% and 2.25% this year, before contracting to 1.5% in 2023, according to the latest central bank estimates.

Source: Gestion

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