International
Chilean President abandons his fiscal reform and presents new proposal
August 2|
Chilean President Gabriel Boric said on Tuesday that his government will not insist on a rejected tax reform bill and will promote new initiatives to raise the necessary funds to address some of its promised social proposals.
In June, the leftist ruler had said that his government would insist at the end of July in the Senate to resume the legislative processing of the tax adjustment.
Through a new Fiscal Pact, Boric said that the spending proposals involve resources for 8,000 million dollars to finance programs such as the Universal Guaranteed Pension to improve the lowest pensions, reduction of waiting lists in health, as well as greater investment in citizen security.
“This proposal considers the contribution made by growth, the reform of the state, the strengthening of tax oversight and taxes paid by the higher income sectors to be able to finance in this way the social expenses that are urgent,” he said in a televised speech.
“We are not going to insist in the Senate with the bill that was previously rejected”, he added.
Boric did not specify deadlines for the delivery and processing of the initiatives, or how much the total collection is expected to be.
The government’s new proposal will be divided into two projects, one to improve tax compliance and the other to adjust income tax focused on those with greater resources.
“This initiative will also include tax incentives for investment, productivity and formalization, as well as benefits for the middle class and a new regime for smaller companies,” he said.
He specified that the tax incentives would be equivalent to 0.5 points of the Gross Domestic Product (GDP).
The first project includes measures that seek to increase tax collection through legal modifications that do not imply a tax increase, which would increase tax collection by 1.5% of the GDP in net terms, according to a government minute.
Meanwhile, the second will be focused on income tax for both companies and individuals and will include incentives for investment, productivity and formalization, as well as benefits for the middle class and the new tax regime for smaller companies, which would have a fiscal cost of 0.5% of GDP.
At the investment level, tax incentives such as semi-instantaneous depreciation and a tax credit fund for investments with a multiplier effect on activity, employment and environmental sustainability are proposed.
It also commits to reduce by 30% the processing time for mining projects, according to the minutes.
Additionally, the plan includes five priority areas of productive diversification that by 2026 foresees three or four new lithium projects, two thirds of the energy matrix with renewable sources, 10-12 projects in the development of green hydrogen and an increase in the digital economy.
The original tax reform bill was rejected in March by the deputies and the government could only insist on its passage through the Senate.
Central America
El Niño could intensify global climate risks, warns World Meteorological Organization
Latin American countries, one of the regions in the world most affected by El Niño, must “take extreme precautions” and make use of so-called “climate intelligence” to mitigate the most severe impacts of the phenomenon, the Secretary-General of the World Meteorological Organization (WMO), Celeste Saulo, told EFE on Tuesday.
With a 90% probability, El Niño is expected to return in the second half of this year, and a strong intensity cannot be ruled out.
As a result, the phenomenon could trigger intense rainfall and flooding in some areas, while causing droughts in others, leading to direct impacts on communities and a wide range of economic sectors, including fishing and agriculture.
Saulo said countries in the region have improved their scientific and institutional capacity to monitor and respond to El Niño, as well as to understand how it interacts with other climate variables, including those linked to climate change, in order to better forecast “more or less severe impacts.”
When describing likely consequences in South and Central America, the Argentine scientist first referred to the “Coastal El Niño,” as the phenomenon is known in Peru and Ecuador.
She explained that this event brings increased rainfall and ocean warming, which strongly affects the fishing industry.
She added that northern South America, Central America, and northeastern Brazil are typically exposed to below-normal rainfall or drought conditions. In past extreme episodes, El Niño has even affected the operational capacity of the Panama Canal and created serious water access and management challenges during severe droughts.
In contrast, southeastern South America—including southern Brazil, Paraguay, northern and northeastern Argentina, and Uruguay—can expect above-average rainfall, increasing the risk of flooding, severe storms, and landslides.
Given the potential for fear and misinformation among populations, Saulo urged people to “trust the institutions responsible for meteorological information,” stressing that national meteorological services are the official and authoritative sources in each country.
“These are the ultimate responsible authorities and the voices of expertise,” she emphasized.
The most recent El Niño episode occurred between 2023 and 2024 and was among the five strongest ever recorded, contributing to record global temperatures.
The WMO chief noted that climate models remain uncertain about the intensity of the next El Niño, though more accurate forecasts are expected in the coming weeks.
While climate change has not been proven to increase the frequency or intensity of El Niño events, scientists do know that both can interact and amplify extreme weather impacts, potentially leading to natural disasters.
Although Latin America is often heavily affected, El Niño impacts can also be felt in North America, the Caribbean, central and eastern Africa, parts of Asia, and Australia.
Central America
Argentina Falls to Lowest Rating in Global Workers’ Rights Index Under Milei Administration
Argentina and Panama have joined Ecuador among the world’s 10 worst countries for workers’ rights, according to a report released Monday by the International Trade Union Confederation (ITUC).
The three Latin American nations appear alongside Belarus, Egypt, Eswatini, Myanmar, Nigeria, Tunisia and Turkey in the latest edition of the Global Rights Index, which evaluates the protection of labor rights around the world.
According to the ITUC, Argentina entered the list this year after being downgraded to Category 5, marking its second consecutive year of declining ratings.
“Argentina joins the list of the 10 worst countries for workers this year after falling to Category 5, following a second consecutive year of deterioration in its rating,” the organization stated.
The report argues that working conditions and the environment for trade unions have become increasingly restrictive under the administration of President Javier Milei.
“Conditions for workers and trade unions have become increasingly repressive and hostile under the far-right government of President Javier Milei,” the study said.
The ITUC also highlighted Argentina’s implementation of an anti-blockade protocol aimed at maintaining public order during road blockades. According to the report, the measure authorizes what it describes as the indiscriminate use of police force.
The organization noted that Argentina’s rating has worsened for a second consecutive year, placing the country in Category 5, the lowest level assigned in the index and the worst rating Argentina has ever received.
“This represents an abrupt and unprecedented decline from Category 3 to Category 5 in just two years,” the report stated.
Category 5 includes countries where workers’ rights are considered “not guaranteed.” According to the ITUC, the downgrade reflects a shift from recurring labor rights violations to a situation in which workers are no longer assured basic protections.
The annual index assesses issues such as freedom of association, collective bargaining rights, the right to strike and legal protections for workers and trade unions.
The report’s findings place renewed international attention on labor conditions in several countries, particularly in Latin America, where Argentina, Panama and Ecuador now rank among the most challenging environments for workers’ rights.
International
OAS Election Mission to Monitor Claims of Political Interference by Colombia’s President
The Electoral Observation Mission of the Organization of American States (OAS) has pledged to follow up on allegations regarding the alleged involvement of Colombian President Gustavo Petro in political campaigning ahead of Sunday’s presidential election.
The announcement was made by presidential candidate Claudia López after a meeting with the head of the OAS Electoral Observation Mission, former Dominican Republic President Leonel Fernández.
According to a statement released by López’s campaign, the OAS mission listened to the concerns raised by the candidate and committed to monitoring the complaints she has submitted to both national and international organizations.
The mission also reiterated its commitment to overseeing the electoral process to help ensure that the will of Colombian voters is respected throughout the election.
“We have turned to international forums and technical observation missions to warn that Colombian democracy cannot be left at the mercy of fear or undue pressure,” López, the former mayor of Bogotá, said following the meeting.
López has repeatedly expressed concerns about what she describes as political interference in the electoral process and has called on national and international institutions to closely monitor the conduct of the campaign.
The OAS observation mission is one of several international bodies deployed to Colombia to monitor the presidential election, which is taking place amid heightened political tensions and intense competition among candidates from across the ideological spectrum.
The election is expected to be closely watched both domestically and internationally as Colombians choose whether to continue with the country’s first left-wing administration or shift toward a new political direction.
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