Chile experienced a sound last Wednesday (15) that had not echoed with such intensity since the 2019 protests: the “cacerolazos” (pot-banging). The noise from the streets of Santiago served as the soundtrack for José Antonio Kast’s first national address, in which he presented an ambitious and controversial “economic reconstruction and development” plan. Using a rhetoric of disruption, the far-right leader aims to slash corporate income tax from 27% to 23%, citing the need to align the country with the OECD average.
The opposition, led by the Broad Front (Frente Ampla), reacted immediately. They argue that the Kast administration is practicing “false austerity”—cutting essential public spending for the working class while sacrificing tax revenue to benefit the wealthiest sectors. Beyond the tax agenda, Kast targeted environmental licenses, labeling them “obstacles that destroy jobs,” and proposed measures requiring the State to compensate companies if positive environmental permits are canceled.
The “Border Shield Plan” in Action
While the tone in economics is one of radical liberalism, the approach to security is characterized by an iron fist. This Thursday (16), the Kast government moved from words to action with the first Chilean Air Force flight deporting 40 migrants (Colombians, Bolivians, and Ecuadorians). According to the government, most have criminal records, but the plan envisions the systematic removal of all foreigners in an irregular status.
This strategy is part of the so-called Border Shield Plan, which includes the construction of ditches and fences, along with joint operations between the Armed Forces and police in the north of the country. Kast promised to criminalize irregular immigration and facilitate voluntary departures, hardening legislation that was already a point of tension in the Andean region.
Trial by Fire in Congress
Despite the “emergency government” rhetoric, Kast faces a challenging legislative landscape. The right wing is strong but not self-sufficient. The approval of more than 40 economic measures—ranging from tax benefits for capital repatriation to temporary VAT reductions for new homes—will be the true barometer of his governability.
With fuel prices skyrocketing following adjustments to stabilization funds and the social climate heating up once again, the president is betting everything on an economic shock. For Kast, it is the price of “breaking the cycle”; for his critics, it is the beginning of a new period of institutionalized inequality under the guise of efficiency.
