The fall of the AFP's E Funds—the most conservative of the pension multifunds—has dealt a new reputational blow to the individual capitalization system. There is broad agreement that the risk taken by the executives of the seven AFPs involved, consolidated in losses exceeding 10% of the funds in that category, was almost reckless, but voices have also been raised about the role of the superintendency, which is responsible for ensuring the proper conduct of the system's administrators.
At La Moneda this week, concern shifted to the Justice Minister, Fernando Rabat, due to the signing of decrees that granted sentence reductions to those convicted of sexual crimes against minors and to at least two inmates of Punta Peuco. It has not been easy for the Secretary of State, who chose to apply the law by granting a benefit that has been awarded under different governments for 20 years, to explain himself. Especially because—strictly speaking—it is the Supreme Court that must ultimately approve or reject the requested reductions. And because—truth be told—what was lacking here was political sensitivity to foresee the vulnerability that would open up. The opposition has been activated and impeachment is already being discussed, and President José Antonio Kast sent a clear message: Minister Rabat continues to have his confidence.
The impasse of the Justice chief overshadowed the debut of the new government spokesperson, Gonzalo Arenas. A former deputy, he will retain the status of undersecretary, but will participate…
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Justice Minister Fernando Rabat at the session of the Family Committee. Photo: Sebastián Cisternas/Aton Chile SEBASTIAN CISTERNAS/ ATON CHILE Comments
The fall of the AFP's Fund E —the most conservative of the pension multifunds— has dealt a new reputational blow to the individual capitalization system. There is broad agreement that the risk taken by the executives of the seven AFPs involved, consolidated in losses exceeding 10% of the funds in that category, was almost reckless, but voices have also been raised about the role of the superintendency, which is responsible for ensuring the proper conduct of the system's administrators.
At La Moneda this week, concern shifted to Justice Minister Fernando Rabat, due to the signing of decrees granting sentence reductions to those convicted of sexual crimes against minors and to at least two inmates of Punta Peuco. It has not been easy for the Secretary of State to explain that he chose to apply the law by granting a benefit that has been granted under successive governments for 20 years. Especially because —strictly speaking— it is the Supreme Court that must ultimately approve or reject the requested reductions. And because —truth be told— what was lacking here was political sensitivity to foresee the vulnerability that would open up. The opposition has been activated and there is already talk of a constitutional accusation, and President José Antonio Kast sent a clear message: Minister Rabat continues to have his confidence.
The Justice Minister's impasse marred the debut of the new government spokesperson, Gonzalo Arenas. A former deputy, he will retain his undersecretary status, but will participate in the political committees, and those who know him assure that he will make his opinions heard in the Palace.
In the opposition there was a murder. An attempted political murder, that is. The victim was PPD Senator Pedro Araya, who was removed from the powerful Constitution Committee. His sin? Freely seeking agreements with La Moneda, a practice that the opposition wants to curb.
In France, the welfare state is creaking, and its effect is spreading to the protests that are also beginning to develop in Italy, Portugal, and other countries. Two world leaders are living crucial hours for their political futures: Israeli Prime Minister Benjamin Netanyahu and Brazilian President Lula Da Silva. The former faces general elections that have turned into a referendum on his management, marked by the war following the Hamas attacks and his brutal response in Gaza. And the latter contests the runoff this Sunday against Flavio Bolsonaro.
Have a good Sunday.
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