"Once again, he ends up governing for the wealthiest": opposition lashes out at Kast after approval of vetoes to the mega-reform

The approval in the Chamber of Deputies of the three vetoes presented by President José Antonio Kast to the mega-reform generated harsh criticism from opposition parliamentarians. The vetoes seek to eliminate three provisions incorporated during the legislative process, related to the prohibition of compound interest, the so-called right to financial forgetfulness, and the limitation of 30 days for payment deadlines to small and medium-sized enterprises. The Executive's objections will now need to be reviewed by the Senate. After the vote, opposition parliamentarians strongly questioned the Chamber's decision and pointed to the potential effects that the elimination of the three norms could have on indebted individuals, families, and small businesses. Deputy Sofía González (PC) argued that the vetoes reveal, in her opinion, the intent behind the initiative promoted by the Executive. "These three vetoes demonstrate what the soul of this mega-reform is, which is the defense of the wealthiest at the expense of those who have the least," she stated. The parliamentarian emphasized the three eliminated issues. According to her, one aimed to end the charging of interest on interest; another allowed the removal of certain financial records after five years, and the third sought to establish a maximum period of 30 days for payments to SMEs by the State. González described as "a shame" that a discussion incorporated during the legislative process was eliminated through presidential vetoes. Deputy Raúl Leiva (PS) focused his criticisms on the provisions regarding financial forgetfulness and the 30-day payment deadline for small and medium-sized enterprises. Regarding the first issue, he warned that its relevance is linked to the upcoming entry into force of the Personal Data Protection Law. "The issue of the personal data protection law comes into effect in December, and there is debate about whether it will actually do so. That’s why it was so important to maintain a norm of financial forgetfulness to protect all those Chileans who wanted to re-enter the market," he said. Leiva also questioned the Executive's removal of the norm establishing a maximum period of 30 days for payments to SMEs. The parliamentarian linked both decisions to the economic priorities he attributes to the Executive. "It seems that the important thing is big companies, multinational corporations, and not the entrepreneurs of our country," he affirmed. In his view, the Executive could have opted for amendments aimed at modifying the articles rather than eliminating them. "It could have been an additive veto, a veto that modified the initiatives, but we are used to the government not wanting to listen, only imposing," he said. Raúl Leiva (PS). Photo: Chamber of Deputies. Similarly, Deputy Jaime Araya (Ind.-PPD) accused the government of favoring financial institutions and higher-income sectors. "With the approval of these presidential vetoes, the big beneficiaries are the banks and higher-income sectors, while indebted families, SMEs, and the middle class continue to wait for answers," he stated. The parliamentarian also criticized the ruling benches for supporting the observations and assured that with this, tools that, in his opinion, could benefit indebted individuals and small businesses were eliminated. "The workers of Chile deserve to live better, and these three tools that had been approved, ideas from the opposition, today the government comes and crushes them," he said. Deputy Jaime Araya Dedvi Missene. Deputy Jorge Brito (FA), meanwhile, broadened his criticisms to the entire mega-reform and argued that the vetoes are part of a project that, according to his assessment, harms regions and municipalities and benefits higher-income sectors. "President Kast vetoed the right to financial forgetfulness and the 30-day payment for SMEs. Thus, he closes a mega-reform that leaves out regions, hits municipalities, and lowers taxes for large fortunes. A dark chapter. In 2030, it will be time to fix it," he stated. Deputy Jorge Brito Dedvi Missene. Senator Diego Ibáñez (FA) also questioned the elimination of provisions related to indebtedness. "One in four Chileans are delinquent debtors, mainly to access housing, health, education, or retail shopping. The right to financial forgetfulness or the prohibition of interest on interest, the only measures that improved their situation, are vetoed by President Kast without any alternative to the problem," he outlined. Supporters defend the vetoes. From the ruling side, however, the parliamentarians who supported the presidential observations argued that the eliminated provisions could produce effects contrary to those sought by their promoters. Deputy Luis Pardo (RN) stated that the three norms came from parliamentary motions that, according to him, had constitutional issues and were unrelated to the main idea of the project. "The three observations originate from parliamentary motions that are unconstitutional, in fact, they were declared inadmissible and are also unrelated to the main idea of the project," he said. Pardo particularly defended the elimination of the norm on compound interest. He explained that the Chilean legal system already includes provisions regulating the charging of interest and establishing restrictions on certain interests on defaults and limits on rates. "The prohibition of financial forgetfulness is also a norm that seeks a more public impact effect but is already contained today. Today, financial information cannot be used after five years; removing the norm that allows certain exceptions, which are negotiated and agreed upon by the SMEs themselves, harms those SMEs that are making use of those very exceptions," he detailed.