President Piñera established a new Sunday national chain. This time, to explain the agreement reached this morning between the Government and part of the opposition to generate a social and economic roadmap for the next two years, increasing public spending by US$12 billion. The aim is to address the effects of the pandemic and the confinement measures that have led to losses for the country’s families.
“We have built a Social Protection Network, which includes The Minimum Guaranteed Income, the Covid19 Bonus, the Labour Protection Act, the Income Protection Project for honor workers, the distribution of 2.5 million Food Baskets and Emergency Family Income,” the Representative said.
“This network protects and helps more than 10 million compatriots today,” Piñera said, adding that this is “not enough.” And for this reason, he emphasized, thanks to the “valuable agreement”, the million-dollar fund was created that will serve, among other things, to strengthen the already announced Emergency Family Income (IFE).
The presence of the opposition
It should be mentioned that it was essential for the Government to sign the agreement and to make the opposition co-responsible, in the midst of the crisis. And he succeeded, however, halfway through, democratic revolution and the Radical Party were ruled out.
Without further words, Piñera thanked the “expected and urgent” agreement for the wills of parliamentarians and political parties of government and opposition.
In addition, he thanked experts and economists, social organizations, municipalities, universities, trade unions, guilds and professional colleges.
“Thinking about families,” Piñera said, reiterating the morning’s information, confirming that the IFE will be $100,000 pesos per person and, for example, for a family of 4, it will supplement their own income to reach $400,000 pesos per month for the household.
“Thinking about the neighbors and communities,” the Mandate added, the agreement will allocate additional $120 million funds for municipalities and $20 million for Civil Society Organizations so that they can help their neighbors and beneficiaries most affected and needy.”
In addition, “thinking about health workers and the sick,” the head of state said, reported that the plan also sets an additional $400 billion fund to fund additional health system expenses.
Employment and SMEs
On the economic front, and targeting SMEs, Piñera stressed that the agreement contains a “robust effort” to recover employment, entrepreneurship, investment and economic activity.
Piñera explained that the agreement strengthens employment protection and increases coverage and improvement of Cesantía Insurance benefits. “It also supports self-employed people with a fee roll and creates a Reconversion and Training Fund for workers most affected by the crisis,” Piñera promised.
The plan aims to temporarily increase coverage of youth and women hiring subsidies from the current 40% to the most vulnerable 60% and will create a hiring subsidy for all unemployed or unemployed workers.
In addition, it provides financing for SMEs by improving the benefits of Fogape credit and strengthening the role of Sercotec, Fogain, Fosis, Indap, and State Bank.
According to national chain information, the plan also includes temporary tax incentives to businesses, through the halving of SME First Category tax, the extension for an additional 3 months of the suspension of PPM payment, and the extension of the time limit for instant depreciation of 100% of investments.
The agreement provides for facilitating access to credit, including partial state guarantee and “no costs for smaller, paid and adequately protected companies from public resources, for larger or strategic enterprises”.
Piñera closed that the agreement also incorporates “adequacy of labour standards to fully comply with protocols to protect workers’ health”.
“I want to finish these words by sharing with you a reflection. Chile and Chileans have forged ourselves in adversity and are children of rigor. In our history we have taken many hits and faced great challenges. But always, always, we have been able to stand up and return to the way,” the Mandate concluded.
