Chile: new left president announces a stimulus plan to support economy and a new project

Gabriel Boric, detailed a series of families, job creation and small and medium-sized businesses. The plan is $ 3.7 billion (€ 3.4 billion).

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“Chile Apoya”, “Chile supports”. This is the name of the recovery plan through which President Gabriel Boric (left) hopes to redress the economy in difficulty of Chile. This is “a starting point”, he said Thursday, April 7, when presenting a package of measures estimated at $ 3.7 billion (3.4 billion euros) And presented, in his wording, as an “inclusive” project: “We will face the rise in the cost of living. We will encourage the creation of jobs and aid for the relegated sectors. We will support those who have abandoned the labor market to perform tasks related to people care and reverse the difficulties that the pandemic has left. “

The announcement took place less than a month after taking office – March 11 – the head of state left, 36 years old, the youngest in the history of the country, thus giving the tone of his Economic vision, component on which it was very expected. During the campaign, it was criticized, on its right, for proposals considered too ambitious, including to introduce a series of social rights in health, retirement or education. A program funded by an increase in taxes that must, by the end of the term, represent 5% of the gross domestic product (GDP).

The plan is divided into three parts: 36% of the released budget is vested with social assistance to homes, more than a quarter at a boost to small and medium-sized enterprises, and the rest to the creation of jobs . Thus, 500,000 positions should emerge, with the focus on female employment, more impacted by the CVIV-19 pandemic.

Detailed measures also include free public transport price freezing throughout the year. This is the announcement of the increase in the subway ride, in Santiago, October 2019, which triggered the historical social movement against inequalities. The former government of Sebastian Piñera (right) had retroceded. With international rising energy rates, the government has also introduced a control of the price of gas, thanks to a state grant.

“Rational Plan”

With a word for student movements and “permanent thought [to have] been on the other side”, Gabriel Boric, former university leader, has, again, unveiled a 15% increase in the food scholarship in higher education, enjoyed by 620,000 students.

“This is a rational plan. It is intended to maintain the economy to restart it. It is not ambitious,” Analysis Francisco Castañeda, economist, director of the business school Mayor University. “The big changes are not overnight, and so that they are sustainable over time, they must be responsible in their implementation,” said Gabriel Boric, Thursday, April 7, in the line of gradual speech distilled since the inter-towers of the presidential election.

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/Media reports.