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The project is advancing at full speed to withdraw a second 10% of the AFPs. This Wednesday the vote will be taken in the Senate Constitution Committee and it is expected that it will be sent to the upper house. Meanwhile, the government has continued with negotiations to limit the second withdrawal to people who have lost income and to make withdrawals taxable. There was even on the table the possibility of granting more solidarity in the pension reform in order to achieve the above, or dividing the AFP industry so that they are mere managers of funds and not accounts, according to knowledgeable sources.
But this Tuesday the talks were somewhat different. During the afternoon, the senators of the Labor and Finance commissions met with the Labor Ministers, María José Zaldívar; Hacienda, Ignacio Briones; and from Segpres, Cristián Monckeberg.
After the appointment, the president of the UDI, Jacqueline van Rysselberghe, commented that “it was a meeting to present proposals. We have been seeing what is the disposition of each sector ”. He also added that “we accepted the proposal of our senators to present their own project.”
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In opposition they follow this idea at a distance. Senator Carlos Montes (PS) said after the appointment that the second 10% “goes anyway. The government is belatedly looking for alternatives (…) We will always be willing to listen to the proposals to see if there is something that really benefits families more. Until now, there is nothing concrete neither in social security nor in tax matters, we will see what happens ”.
Senators who attended the meeting and preferred to keep confidential comment that it was only an approximation between both parties, and that they are just discussing the issue. There, the idea of the government presenting its own project to limit the withdrawal of 10% would have been addressed, as well as what some of these possible restrictions would be.
In any case, from the opposition they point out that the proposals made by the government do not leave them satisfied and that they were very general, and they warn that they have no incentive to reject the project that is currently being processed in the Senate. What they want, they point out, is to advance in a pension reform, but the withdrawal of 10% is already approved.
The government hopes to have time at least until next week before the project is voted on in court to continue talks with the ruling and opposition parties. And it doesn’t seem like such a crazy idea, since the Senate is currently busy with the Budget bill.
In parallel, the Executive confirmed that it will go to the Constitutional Court (TC) in case this initiative prospers as it is. During his participation in the Sofofa, President Sebastián Piñera assured that a group of parliamentarians is trying to write a parallel Magna Carta through “transitory articles”.
The President commented that “this is not only deeply unconstitutional, but it is a path that leads to the destruction of the institutionality.” He also announced that “as a government, we are naturally going to try in the legislative process to correct this circumvention, this abuse, this loophole and, otherwise, we are going to turn to the Constitutional Court, because it is not only an option, it is an obligation.”
