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Chile, trials of peace: +50% pensions and new constitution

The government of the South American country, shocked by a street protest that caused 23 deaths in two months, ran for cover: a 5,5 billion dollar growth plan and a constitutional referendum in April.

Chile, trials of peace: +50% pensions and new constitution

The revolt began to protest against the incredible increase in metro fares in the capital Santiago, which have almost quadrupled since 2007, but then expanded to witness a very deep social unease, linked to the increase in the cost of living and the repressive attitude of the government led by the liberal Sebastian Pinera. After 46 days of very violent street clashes, with a balance that speaks of 23 dead and over 2.000 injured, and a very heavy atmosphere, with the army in the streets as in the days of the Pinochet dictatorship, Chile is trying to re-establish social peace.

To do so, the centre-right government said goodbye to austerity, approving a 5,5 billion dollar growth plan, which includes a support bonus for 1,3 million families and a record increase for pensions. In fact, as early as December, those over 80 will see the check rise from 130 to 207 dollars a month, and a 50% increase is also envisaged for all other pensioners, albeit only starting from January 2022 (for the moment the government has reached +30% for the 75-79 age group and +25% for the under 75s).

Furthermore, as was to be expected, Pinera has also retraced his steps with regard to public transport, whose fares in Chile are decided by the central state. In a short time, a law was passed which not only restores the old tariffs but also halves the prices for the over 65s, who also receive a subsidy for the purchase of medicines. To give a further response to the growing social tensions, political parties, including those of the opposition, have reached a historic agreement to adopt a new constitution (to this day that of Pinochet still applies). The text will be submitted to a referendum in April 2020.

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