Monday, June 1, 2026

Kast appears before Parliament for the first time amid criticism of his "mega-reform"

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Santiago de Chile.- The President of Chile, José Antonio Kast, will deliver his first «Public Account» before Congress this Monday, after a complex and questioned start-up phase of his Government marked by an ambitious reform plan that includes cuts and tax reductions for companies.

The president will go to the Parliament headquarters in Valparaíso, where he must explain his campaign promises in the face of the immediate challenge of the Senate approving the «megareform», a neoliberal plan that is considered his star economic project. Kast's two and a half months in La Moneda have been marked by his decision to pass the cost of the war in Ormuz onto the citizens' pockets with a historic rise in fuel prices, along with a millionaire cut in public finances and a premature cabinet reshuffle, affected by controversies in security management, one of his main promises. This scenario explains, according to experts, the abrupt drop in citizen support with which the president arrives at the meeting: 39% approval versus 56% disapproval. The greatest expectation is placed on the announcement of the security plan by the new minister Martín Arrau, in order to quell the criticism caused by the departure of his predecessor Trinidad Steinert, and which, along with that of spokeswoman Mara Sedini, signified the fastest ministerial adjustment since the return to democracy.

Legislative Fight

The decision for ministers already in the cabinet to take on these portfolios has fueled rumors that Kast could announce a structural reform that reduces the size of the state apparatus from 25 to 19 ministries. As a prelude to his speech, the head of state was criticized by the opposition from the former presidential candidate of the Communist Party (PC), Jeanette Jara, who pointed out that "many of the things that were said in the campaign lacked support." The Executive faces an intricate legislative scenario marked by the battle for the approval of the "mega-reform", an economic and tax initiative that the Government has positioned as key to reactivating the country's growth, and which will have its first vote in the Senate the day after the accountability.

His progress depends on the votes of the left-wing opposition, in an Upper House where the Socialist Party holds the largest bloc, which is why it is speculated that Kast could endorse the intention to make adjustments to the controversial Law and relax the approval period, after having threatened to proceed through a decree of "utmost urgency".

Aware that the future of the "mega-reform" could be defined by just one or two votes, the Government has shown itself willing to modify controversial measures such as the tax invariability from 25 to 20 years, or to review the millionaire amount of the employment credit, warned by international organizations. However, it would maintain the reduction in the corporate tax from 27% to 23% and other regulations on environmental permits and housing incentives that this miscellaneous law brings together.

Tensions over Fiscal Management

Adding to this scenario is the climate of political confrontation following a harsh public finance report issued by the Treasury, which opened a flank of criticism against the administration of former President Gabriel Boric, by denouncing a supposed "error" in calculation that changes the estimate of public debt for the 2026-2030 period. Tensions reached the ranks of the ruling party, where there are discrepancies due to pressure from a sector that is pushing to present a constitutional accusation against the former Minister of Finance, Nicolás Grau, for the questioned inherited fiscal management.

Balance and International Agenda

It is expected that Kast will also offer a status update on the migration control plan, which has international implications, and with the expectation of a possible mention of the formal re-establishment of diplomatic relations with Venezuela. And also on the fight against drug trafficking and organized crime, following multilateral meetings with countries in the region.

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