President Sebastián Piñera apologized and announced a series of measures to end the social crisis

Pensions, minimum wage and parliamentary reduction: Piñera delivers a series of measures amid crises in the country.

The President also apologized to the Chileans, for their "lack of vision", in a crisis that, according to him, had been coming for decades.

President Sebastián Piñera announced a series of measures to end the social crisis in the country.

First he indicated that this comes from decades ago, so he acknowledged a "lack of vision and I apologize to my countrymen." To then point out a series of measures that will make up his "Social Agenda" that will be proposed to Congress or directly implemented by the Government, as appropriate.

Pensions

On the issue of Pensions, he announced an "immediate increase of 20% of the Basic Solidarity Pension, which will benefit 590 thousand pensioners." Together with this, an "immediate 20% increase in the Solidarity Pension Contribution, which will benefit 945 thousand pensioners." An "additional increase in basic pensions and solidarity pension contributions, during the years 2021 and 2022, for pensioners over 75 years old."

While for the pension savings of the middle class and the women who work and contribute, they will be given a contribution of fiscal resources "to increase their pensions at the time of retirement, which will favor 500 thousand workers".

And finally, tax contributions to improve pensions for senior citizens.

Health and Medicines

Speaking about health, the President announced the creation of an Insurance, which will cover part of the cost of medicines in Chilean families. And in turn, the "extension of the FONASA agreement with pharmacies, to reduce the price of medicines, which will benefit more than 12 million people." 

In addition, he insisted on the urgency of "immediate discussion of the Bill sent by our Government to the Congress that creates the Catastrophic Diseases Insurance, in order to ensure a ceiling on family health spending." Whatever exceeds that ceiling, the insurance will cover it.

Guaranteed Minimum Income

On Salaries, a Minimum Guaranteed Income of CL$ 350,000 (USD 482) will be created, "for all full-time workers that complement the workers' salary, when it is less than CL$ 350,000." In the Guaranteed Minimum Income, the State is responsible for supplementing the salary, in case the worker does not reach CL$ 350,000.

Electric rates

Another of the announcements was a mechanism for stabilizing electricity rates, which would allow the recent increase of 9.2% of electricity to be canceled, which had been announced by January 2020.

Inequality

While in inequality, one of the measures he explained was higher taxes on the highest income sectors, with the creation of a new tranche in the 40% Complementary Global Tax for income over CL$ 8,000,000 per month (USD 11,016). This "would increase tax collection by USD 160 million." 

On the other hand, he pointed out greater equity between high and low income districts. This, strengthening the Municipal Common Fund, "establishing greater contributions from the higher-income districts, for the benefit of the lower-income districts."

He added that they propose, and therefore support, the reduction of parliamentary diets and high salaries of the public administration. In addition to reducing the number of parliamentarians and a limitation of re-elections.

Delinquency

To combat crime, he proposed the creation of the Victim Advocacy Office, which would facilitate access and strengthen legal defense and social and psychological support for victims of crime.

Reconstruction

In conjunction with this, in order to restore property that has been damaged in recent days, a "Reconstruction Plan for damages and destruction caused by violence and crime in recent days, which have caused serious damages to public infrastructure, especially in the Metro. 

The President evaluated that the plan "will take time" and will commit resources for more than 350 million dollars.

Urgency in projects sent

In addition, the President said that there are several projects of high social content that have been sent to Congress and are intended to accelerate their processing and approval. 

Among them the Pro-Childhood Project, which ends with the SENAME; The project that creates the Catastrophic Health Insurance; Project the right to the Universal Crib Room and the project that establishes the reduction of the contributions (housing tax) of the most vulnerable older adults.

Finally, President Piñera stressed that "this Social Agenda will not solve all the problems that afflict Chileans. But it will be a necessary and significant contribution to improve their quality of life."

Source: Emol