Finance Ministry summons opposition over adjustment bill tying clause amid frictions

Chile's Finance Ministry has summoned opposition advisors for a Monday virtual meeting to explain the public sector adjustment bill's controversial 'tying' clause, following initial backlash from president-elect José Antonio Kast's team. The session aims to smooth congressional processing from January 5, while the presidential office orders political appointees to take pending vacations before March's government handover.

Building on earlier tensions where Kast allies like Republican Party president Arturo Squella decried the bill's provisions as a 'breach of trust' for limiting contract worker dismissals, Finance Minister Nicolás Grau has called advisors from the Chamber and Senate Finance committees, plus opposition leaders, to a virtual meeting on Monday, December 29, at 5 p.m. The goal is to preview the bill's content—without full text—to anticipate disputes ahead of its January 5 congressional debate.

Opposition parties RN, UDI, and Republicans confirmed attendance. RN deputy Frank Sauerbaum said the group would review over 100 norms post-meeting before deciding on engagement, criticizing the US$600 million budgeted against a US$1.5 billion cost. UDI's Felipe Donoso plans participation pending the final text, while Republican deputy Agustín Romero will send an advisor to promote transparency.

In parallel, Interior Minister Álvaro Elizalde instructed at Friday's cabinet that political appointees must not remain beyond March 11—the handover to Kast—and cannot defer vacations past February, distinguishing them from career staff protected by the tying clause. Elizalde rejected threats of constitutional accusations against Grau as 'absurd.'

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Tense legislative debate in Chile's Chamber of Deputies over the government's megareform amid opposition amendments
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Chilean government pushes megareform timeline despite wave of opposition amendments

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The Chamber of Deputies' Finance Committee began on Tuesday the detailed discussion of President José Antonio Kast's reconstruction and economic reactivation megareform, amid tensions over more than 1,295 amendments filed by the opposition.

The government and right-wing parties held calls and issued statements to reduce conflict after the announcement of a constitutional accusation against former Finance Minister Nicolás Grau.

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Deputies from Republicanos and the Partido Nacional Libertario filed a constitutional accusation on Monday against former Finance Minister Nicolás Grau over irregularities in fiscal projections.

The finance commission approved the core of president josé antonio kast’s reconstruction megaproject on thursday after 15 hours of debate. The progress leaves divisions in the christian democrats between deputies and senators, while the opposition plans to obstruct the process.

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Economy Minister Luis Caputo and La Libertad Avanza Senate bloc leader Patricia Bullrich met with allied senators to discuss public works, regional economies, and fiscal balance. The meeting included UCR representatives and provincial dialoguist blocs. The government aims to garner support for its legislative agenda, including electoral reform.

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