The economists Eduardo Engel, José de Gregorio and Rodrigo Valdés, and the economist Andrea Repetto, through a letter to El Mercurio asked to merge the projects of the Universal Guaranteed Pension (PGU). This, after La Moneda entered two initiatives to Congress, one that establishes the delivery of the benefit, and another that indicates the tax exemptions that will allow the financing of the measure. ” It is a dangerous strategy since with high probability only the expenses will be approved. It is urgent to merge both projects,” the economists said in the letter. In their letter, the specialists also stated that not even joining the initiatives guarantees funding to the PGU and assured that the system devised by the government “also involves using supposed slacks that are nothing more than a fanciful fiscal space that depends on unrealistic projections.” The economists described that it would be appropriate for the discussion to take place in conjunction with the debate on the reform of the contributory pillar. “Only in this way will be the incentives to reach agreements and pass a reform that comprehensively solves the problems of the pension system.” We understand that it is urgent to show progress. This, however, cannot be at the cost of further increasing fiscal imbalances, however understandable it may be that the government seeks to buy a political victory in its final stages.”
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