Cecilia Mackenna Ambassador tutional project was clearly the failure in the work done by most of its members. Greatly influenced by what had happened in October 2019, many constituents held radical positions which meant reshaping Chile’s political, economic, and social agenda, something that by now Chileans were not ready to follow. The proposals put forward by these constituents aimed mainly at ending the so called “neoliberal model”, which to them was the root of all problems although to others it was the factor that led Chile through the path of prosperity. Needless to remember that this was the model embraced by all Chilean governments for the past 30 years, irrespective if from centre-right or centre-left. The result could also be interpreted as a vote against the poor performance of the Government. Though after only 6 months, it was seen as ineffective, inexperienced (responsible for innumerable “unforced errors”) and clearly not responding to the main worries of the population which at this stage were insecurity; inflation, uncontrolled migration; not tackling the pension and health reforms, etc. All of which helped increase the feeling of detachment towards the government amongst large number of Chileans. At present we are in the initial phase of writing a new Constitution, which will keep us busy for the next months. Political parties have started negotiations, led at this stage by Parliament, in order to work both in process and content, the features of a new Constitutional proposal, which will be put to vote probably in early 2023. Negotiations are being held as to who will write the new constitution, the role of the political parties and of Parliament; whether and to what extent independents, civil society and experts will take part; the timetable for the whole exercise, etc. More important though is what relates to its content, namely the role and size of the state; issues regarding political and social rights, pensions, health, mining, environment, gender parity, right of indigenous people, etc. We are clear that the time has come to exercise moderation in order to attain the political agreement needed to approve a new constitutional proposal. We are confronted with a complex task, to be delivered in a limited time framework and in a period with a complicated economic scenario, both internally and globally. We need to work together to enable growth and development under social and political stability. Further uncertainties won’t help us in this path and we cannot fail again. Parallel to this constitutional exercise, the Government will start discussions on decisive areas of its political and economic agenda such as pensions, health and tax reforms. Regarding foreign policy, the governments needs to clarify its stand on free trade agreements, in particular regarding the Trans Pacific Partnership and the EU modernisation agreement. On free trade agreements one can clearly visualise the “two souls” that characterise the present government’s political coalition. While those having a centre left thinking favour these agreements and see them as a factor for Chile’s prosperity; those in the radical left have a critical stand and opposed them when voted in Parliament. As for the economic agenda and according to both Chile’s Central Bank and the IMF, this year Chile’s growth will be of 2%. The perspectives for 2023 are not too optimistic since we might experience a contraction of around 1%. The old phantom of inflation has made its reappearance, not a promising news. Notwithstanding these complex times, Chile continues to be an attractive place for investing. Chile is a competitive and stable economy with an important network of trade agreements and easy connection to international markets; has a well-trained labour force, represents an expandable market in mining and agricultural resources, amongst other characteristics. Germany has always recognised in Chile a reliable counterpart and it is then no surprise that it is our main partner in the EU. We will continue working closely with our German friends with special emphasis in areas of great potential such as Green Hydrogen, Lithium and Start-ups. Finally and as mentioned before, it’s for me a great honour to join forces with LAV as its Commissioner in Chile in order to help achieve the goal of enhancing the relationship between our two countries. 37
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