© Sebastian Beltran Gaete
PHOTO: SEBASTIAN BELTRAN GAETE/AGENCIAUNO
The Minister of Finance, Mario Marcelcalled this Sunday to be patient with those who suggest or believe that the work of the Constitutional Conventionl is generating uncertainty for the future of the economy and the private sector.
“I tell them to wait for the final text. Do not confuse the things that are discussed, the ideas, the motions, etc., with what will finally appear in the text”, said the Secretary of State in the face of the warning voices that have been raised by the regulations that have been approved , both in the commissions and in plenary session, with a view to the new Constitution.
In an interview with the Mesa Central program on Channel 13, Marcel invited that, before “we start to take positions of Approval or Rejection, I think that the most important thing for Chileans is to read what is going to come out of Convention”.
In any case, the Finance Minister also suggested that hopefully the next Constitution will not have so much detail on each rule. “It is important to understand how far the Constitution goes and where the legislative process begins,” Marcel said.
“There has to be a space for legislation to be passed, so that the parliamentary majorities can decide on political issues of all kinds, and also economic policy, such as tax policy,” he added.
Along these lines, Marcel pointed out that it is important that the details of what the next pension system will be like be defined by law.
fifth retreat
Regarding the project for a fifth withdrawal of pension funds that begins to be processed this Monday in Congress, the head of public finances reiterated that he is once morest it and rejected the opinion of those who affirm that it does not generate an impact on the economy.
“Many of the issues that are cited to justify recalls are real issues, of that I have no doubt. The question is: What is the best response by the State as a regulator, legislator and treasury to these situations? ”, He stated.
The fifth retreat: the litmus test of the new economic team
Before that consultation, the minister affirmed that it is better to generate jobs and help the people furthest behind due to the economic consequences of the pandemic. “A permanent measure, benefit or mechanism must be sought, not something that is done and that will last as long as the funds last.”
On the call of feminist groups to approve a new withdrawal, since it allows the payment of alimony debt, Marcel asked to focus on finding permanent solutions to this issue, and not depend on a measure that is not focused on this area.
The Secretary of State also requested that retirement projects not be understood as aid, since the State does not provide these resources and they are the people’s own funds.
official support
Given the support for the project of a new withdrawal by pro-government parliamentarians, Marcel said that this situation is not just regarding supporting the government. “The most important thing is the conviction of the parliamentarians regarding what are the implications of what they can do. They are measures that seem beneficial, but with such great costs, that we end up paying later, as with inflation”, affirmed the head of the Treasury.
“This is not a campaign of terror and it is not a fiction, these are things that are happening before our eyes,” added Marcel.
When asked if the project will be vetoed by the government if it is approved by Congress, he pointed out that “we must avoid entering into speculation regarding what comes next. The most important thing is the discussion that we are going to have now, during the next few days with the parliamentarians, so that the risks to which we are exposing the country and President Boric’s program are understood.”
economic plan
Marcel also highlighted the series of measures announced on Thursday by the Executive and that seek to help “those furthest behind” following the pandemic, such as women and smaller companies.
Although the government rejects the idea that this is a response to the fifth withdrawal project, Marcel stressed that “it is very different to allocate a quantity of resources in a generalized way, to concentrate on the sectors that are furthest behind and that allows us to inject those resources to the economy without, in turn, putting pressure on inflation”.
On whether the previous aid was very widespread, the minister commented that measures of this type were necessary given the level of the economic consequences of Covid-19.
On the other hand, Marcel emphasized that the government plans a 32% increase in public investment. “This is a combination of the resources that are allocated in the Budget, with the resources that we are adding through these financing programs for labor-intensive projects by regional governments and municipalities. In addition to the fact that last year an increase in public investment was contemplated that was not fully executed, and that it was 10% lower than what had been projected.
Ñuñoa Project
The Minister of Finance was also consulted regarding the paralyzed real estate project in Ñuñoa and the effects it has on investment. In this regard, Marcel said he did not know the details and commented that they are matters closely followed by the Ministry of Economy, but he invited to address this type of debate not only focused on the issue of job creation.
How was the session that brought down a real estate megaproject in Ñuñoa
“We must stop seeing the issue of caring for the environment as an enemy of investment. (…) Clean production is something that is greatly valued, they are comparative advantages,” she added.
TPP-11
Regarding the need to process or not the signing of the treaty of the TPP-11Marcel maintained that the world context has changed a lot since this agreement was born and that is why he preferred to call for reflection.
“We are no longer in the world of generalized globalization, but we are seeing a world of conflicts between great powers, where they try to align other countries around them,” he concluded.
In this sense, the Secretary of State asked to think regarding how the Chilean economy can develop in this new world context.
