The Constitution Commission of the Chamber of Deputies will see during this day, from 3:00 p.m. and in general, the proposals of the fourth withdrawal of 10% of the AFP, promoted by Pamela Jiles (PH), Karim Bianchi (IND) and Jorge Durán (RN).
In the run-up to the vote, there is optimism in the opposition, because if everyone votes together it will be approved. The truth is that they have a majority since the commission has 13 members and is chaired by the PS Marcos Ilabaca. The rest are Jorge Alessandri (UDI), Karol Cariola (PC), Juan Antonio Coloma (UDI), Luciano Cruz-Coke (Evópoli), Camila Flores (RN), Gonzalo Fuenzalida (RN), Diego Ibáñez (CS), Pamela Jiles (PH), Paulina Núñez (RN), René Saffirio (IND), Leonardo Soto (PS), and Matías Walker (DC), so the surprise, as they detail, is that today the initiative is not approved, despite the fact that some government officials have said they are in favor and others in opposition have said they will reject it.
If the initiative is approved, which seeks to extract up to a maximum of 150 UF from pension funds, the next stage is the discussion of the plenary session of the Lower House.
Before the vote, the Government, the ruling party and the opposition referred to this procedure that will take place today. In the Executive, they insist that advancing in the processing of this proposal supposes a wrong State policy, which would significantly affect the future pensions not only of those who are about to retire, but also in other age and social segments close to entering the system. In that line, the Minister of Social Development, Karla Rubilar, said that she would like the project to change its direction “to how we can inject more resources into the pension system.”
Finance Minister Rodrigo Cerda, in fact, arrived in Congress to meet with the pro-government caucuses before this day’s vote. “We are talking with the parliamentarians of Chile Vamos, with the caucuses, based on what is happening with the fourth withdrawal project. We have had good conversations, we believe that we are moving forward and that is why as a government we continue to work and continue to talk with them,” he said. “What the government is concerned about is the well-being of Chileans and that includes arriving with the aid,” he added. “You have to be very careful and our biggest concern today is that if you add to that a fourth withdrawal this can have important impacts on the economy.”
Deputy Tomás Fuentes (RN) said that, if the ministers fail to order the caucuses and convince them not to support the fourth withdrawal, they should resign from their positions.
Let the AFPs end
Deputy Marcos Ilabaca (PS) in conversation with T13, has his verdict in doubt, since “the level of lobbying and pressure has been strong, starting with the Government. The right is very complicated about this, a lot of pressure has been put on the parliamentarians of Chile Vamos.”
“Withdrawals have effects, but I don’t know how much they influence inflationary processes. I think there has been a fairly strong campaign by the economic powers, but several economists have said that this is not so, since the delinquency rate had a historical low. The withdrawals were used in a high percentage to pay debts, “said the deputy.
“Today there is a feeling of disaffection with decisions in this matter. Not for nothing 80% of Chileans believe that a fourth withdrawal is necessary knowing the consequences it can have. (…) I am promoting today, that in the end the AFP ends. The fourth withdrawal is one of the ways to put an end to a system that has only benefited economic groups,” he said.
“The state has long been indebted to pensions. And in the Senate they are trying to solve it through a reform that does not advance,” he concluded.
Campaign of Terror
The deputy of the PPD and member of the Economy Commission of the Chamber, Raúl Soto, insisted on his support for the project that allows a fourth withdrawal from the AFP, which will be voted on in general this afternoon in the Constitution Commission of the House, and called for an end to the “campaign of terror” that has been generated against the initiative.
“Despite all the campaign of terror that has existed against the fourth withdrawal, I advance the news: this afternoon the Constitution Commission will approve the idea of legislating the fourth withdrawal and, therefore, the initiative will continue to advance its process legislative, the particular discussion, and later in the Chamber, and it will gain strength despite all the bad omens that have existed in this matter, “said Deputy Soto.
In that sense, the parliamentarian called on the government and economists “who have dedicated themselves to arguing against this initiative, to occupy that same energy, that same knowledge, not in hindering the project, but in channeling that to establish with the government a working table of economists that allows mitigating the effects on the macroeconomy in case the fourth withdrawal is approved, as I think it’s going to happen.”
