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.

Opposition lawmakers announced plans to submit over two thousand amendments to the national reconstruction project pushed by President José Antonio Kast's government. The move drew accusations of legislative sabotage from the executive branch, while some opposition sectors distanced themselves from the strategy.

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The Partido de la Gente announced on Wednesday that its agreement with the government to back the megareform bill has collapsed, accusing the administration of failing to include middle-class benefits such as VAT refunds on medicines and diapers. The decision marks a sharp turn after weeks of talks and internal divisions within the party.

Segpres Minister José García Ruminot met with Frente Amplio and the Communist Party on Monday to discuss the National Reconstruction Plan recently submitted to Congress. Both opposition groups demanded changes or withdrawal of the bill, but the government insists on keeping its original design. The meetings drew criticism from UDI and the National Libertarian Party, questioning dialogue with the left.

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José Antonio Kast's government held its first expanded political committee on Monday at La Moneda, where Segpres Minister José García announced urgencies for 20 bills, mainly on security and migration. Three initiatives received immediate discussion, including classifying irregular entry as a crime. The announcement comes amid internal criticisms over possible pardons and limits to free higher education.

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