Economist Tomás Izquierdo (Gémines) valued the goal of the mega-reform to incentivise investment, but warned that the project lacks funding and requires modifications. He also called for a labour reform that includes flexibility in working hours and changes in compensation.
The general manager of Gémines, Tomás Izquierdo, has focused on the weak points of the mega-reform being promoted by the Chilean government. In an interview on Radio Pauta, the economist acknowledged that the initiative is heading in the right direction by seeking to incentivise investment and growth, but was emphatic in stating that "the project is not funded, that is quite evident."
Mega-reform: lights and shadows in investment and permits
Izquierdo valued the tax measures and the reduction of permits included in the project, as well as the discussion on tax invariability, although he suggested reducing the initially contemplated timelines. However, the shadow of financing looms over the initiative. "It's a lot of money that was in the initial project, 1.4 billion dollars, and I don't know if it's the best way to spend those resources," he stated.
The economist believes that while hiring subsidies are necessary, they must be better targeted to be efficient. Chile has high unemployment, increasing informality, and formal employment that is not taking off, a scenario that demands surgical responses rather than uncontrolled massive spending.
Labour reform: flexibility, compensation, and minimum wage
Once the mega-reform passes the legislative process, Izquierdo believes that the next unavoidable step is a labour market reform. "Everything related to flexibilising the labour market seems reasonable to me," he asserted. Among the changes he proposes are the flexibilisation of working hours, modification of the compensation system—which in his view generates perverse incentives—implementation of the Universal Crèche, and a new mechanism for setting the minimum wage that takes into account productivity and the employment situation.
“It must be done efficiently. It's a lot of money that was in the initial project, 1.4 billion dollars, and I don't know if it's the best way to spend those resources.”
The economist also referred to the impact of artificial intelligence on employment. Although he admitted that it is still early to know its definitive effect, he insisted that Chile must invest in the continuous training of workers so they can adapt to new technologies. A recommendation that, given the circumstances, sounds more like a necessity than an option.
Economic outlook: a bittersweet 2026 and a hopeful 2027
Izquierdo projected a 2026 of low growth, with characteristics of a technical recession, but he was more optimistic for 2027, supported by a recovery in investment and construction. To achieve this, he considers it key for the Executive to change its communication strategy. "We need to start conveying a more optimistic message moving forward," he stated, with the aim of improving the expectations of businesses and consumers.
For readers interested in the Chilean economy, Izquierdo's message is clear: the mega-reform needs adjustments in funding and targeting, and once approved, the country must urgently address a labour reform that flexibilises the market, modernises compensation, and links the minimum wage to productivity. Otherwise, the recovery expected for 2027 could remain an illusion.
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