Santiago de Chile: The Chilean Chamber of Deputies gave a severe defeat to the Sebastián Piñera government by approving the idea of ??legislating on the possibility that citizens may have part of their pension funds, Prensa Latina publishes.
The project, presented by deputies of the Regional Social Green Federation (FRVS) and independent, seeks to authorize, for the only time and to face the social and economic crisis, that members of Pension Fund Insurers (AFP) can withdraw up to 10 percent of the money deposited in these entities, something unprecedented in Chile.
Despite strong government opposition, the vote was overwhelming, with 95 votes in favor (93 were needed to approve it) 25 against and 31 abstentions.
Analysts considered that result as a resounding defeat for Piñera?s government, especially when the vote, which at the beginning of the session was seen with an uncertain outcome, leaned much more than expected in favor of the initiative, even with the votes of good part of the pro-government deputies.
Since its approval in the Constitution Committee of the Chamber of Deputies last Monday, the government has used all its resources to get it to be rejected, without success.
In recent days, the Minister of Finance, Antonio Briones, reiterated that the project “is a bad idea”, arguing that it is “incompatible to propose withdrawing funds from individual accounts in order to strengthen the pension system,” an argument that was repeated by this Wednesday before the plenary.
From the large business community, its main spokesmen did not rule out frightening public opinion, insisting on possible consequences for the economy and the future of millions of pensioners.
Even, to try to stop that constitutional reform, the government offered at the last minute on Wednesday to expand and improve the plan to help the middle class launched by President Sebastián Piñera on Sunday and which has received criticism from all sectors for insufficient.
For this, the Minister of Finance and other ministers dedicated themselves during the plenary session to lobby the National Congress in Valparaíso, looking for votes to put down the initiative, although unsuccessfully.
After the vote, Jaime Mulet, president of the FRVS, promoter of the project, described the vote as historical and an important step on the road to transforming the AFP, one of the bulwarks of the neoliberal model in Chile, and towards the creation of a more supportive pension system that meets the needs of retirees.
For his part, the communist deputy Hugo Gutiérrez, summarized the result as “the beginning of the end of the AFP, the best business of the dictatorship.”
According to recent surveys, 85 percent of Chileans are in favor of having the right to freely dispose of their monies deposited with the AFP.
However, the legislation still has to go a long way, including going through the Constitution Commission again today, to refine some observations that were made on the text, and the next discussion in the Senate.
In the event that he also gives his support, it will ultimately depend, to become a law, that Piñera stamp his signature, although it is not ruled out that he could express his veto.