The right-wing candidate José Antonio Kast became the new president of Chile on Sunday, after clearly surpassing Jeannette Jaracandidate of the ruling center-left coalition and member of the Communist Party.
While Jara won the first round in November with 26.85% of the vote, Kast beat several right-wing rivals and came in second with 23.92%. It is projected that the majority of those who supported those candidates will vote for Kast, which would ensure him 50% of the votes and the presidency.
“That is what this day is about, continuing to build a common destiny, regardless of the legitimate political differences that exist, Chile is one, the flag protects us all,” said progressive president Gabriel Boric after voting in his hometown of Punta Arenas, in the extreme south of the country.
The challenges
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Since the beginning of his mandate, Kast, 59 years old and father of nine children, will face big challenges, including a divided Congress and pressure for quick results.
“It is essential that Kast start working immediately,” commented Klaus Kaempfe, head of investments at Credicorp Capital. “You don’t have much time before the grace period is up.”
Investors have celebrated Kast’s runoff election victory for months: US Treasury bond spreads are at levels not seen since before the 2008 financial crisis, stocks are hitting record highs, and the cost of insuring Chilean debt against default has returned to pre-pandemic levels.. The Chilean peso has strengthened about 10% this year.
“Social support towards growth and public security should favor Chilean assets, especially due to favorable terms of trades and the positive investment prospects,” commented Andrés Pérez, chief economist for Latin America at Banco Itaú.
Kaempfe added that the Ipsa stock index “It could rise another 3% after the elections, but it will need concrete actions and a cabinet to continue growing.”
Investors place their hopes in Kast to reactivate the Chilean economy. He has promised to reduce the corporate rate for medium and large companies from 27% to 23%, accelerate economic expansion from the current 2.5% to 4% and streamline regulations.
One of his most ambitious and controversial proposals is to reduce public spending by $6 billion in 18 months, without affecting social benefits. However, critics say this proposal is technically unfeasible and unlikely to pass in a fragmented Congress, highlighting Kast’s biggest political disadvantage: his lack of experience negotiating outside his inner circle.
“He is not a person with great ability for agreements,” commented Axel Callis, sociologist and director of the pollster Tuinfluyes.com. “In that sense, it’s going to be difficult for him.”
Kast also runs the risk of overstating popular support for drastic measures, as happened with Boric when he took office in 2022.
“Four years ago, Boric also won by majority, but he misinterpreted the mandate and tried to implement reforms that were too radical,” commented Patricio Navia, professor of political science at New York University.
A right-wing current in the region
At the regional level, Kast’s victory represents a new rejection of the left in Latin America, following the victory of Javier Milei in the Argentine elections and the end of 20 years of socialist government in Bolivia with Rodrigo Paz. In the coming years, Peru, Colombia and Brazil will also go to the polls.
Unlike Boric, who openly criticized Donald Trump, Chile is now emerging as a US ally in a region that, in recent decades, had tended to move closer to China. In fact, China is Chile’s main trading partner.
Kast’s victory marks the beginning of “a new political cycle focused on change,” commented Marco Moreno, director of the Center for Democracy and Public Opinion of the Central University of Chile. Kast’s government will seek to address the security crisis with stricter measures and tackle migration.
For its part, US Secretary of State, Marco Rubio, indicated that the country hopes to strengthen its commercial ties with Chile and highlighted the shared priorities of “strengthening public safety” and “combating illegal immigration.”
The president of Argentina, Javier Milei, congratulated Kast on his X account. “Great joy for the overwhelming victory of my friend @joseantoniokas in the Chilean presidential elections! “One more step for our region in defense of life, liberty and private property,” he indicated.
“We congratulate José Antonio Kast (@joseantoniokast) on his election as president of Chile. The Chilean people expressed themselves massively at the polls and reaffirmed his commitment to Democracy, freedom and the rule of law,” said the former president of Colombia, Iván Duque.
There were some 15.6 million voters called to the polls, which closed at 6:00 p.m. local time.
The official Jarawho was Boric’s Minister of Labor, has highlighted his achievements in social matters, such as the reduction of the working day to 40 hours and a reform of the pension system.
“I have hope that the candidate who comes closest or maintains the same discourse in terms of social benefits, education and those things will win”said 25-year-old biochemist Safka Hernández.
Boric’s call to Kast
The president of Chile, Gabriel Boric, called José Antonio Kast and broadcast the conversation on that country’s national television. In a five-minute communication, the current president congratulated José Anti¿onio Kast as president of Chile.
“As former president of the Republic, I will always be available to collaborate with the affairs of the country,” said Boric. “Let it be a very respectful transition and since March 11 I am interested in having your view of how you see the country”was Kast’s response.
“I am very proud of democracy, regardless of who is angry or sad (…) it will have all the facilities and coordination. I invite you to La Moneda tomorrow (…) to be able to talk about some tasks of continuity of State.”Boric indicated. “He will know the loneliness of power”; The current president also highlighted.
Kast accepted and tomorrow there will be a meeting for an “institutional transfer”as Boric pointed out.
Focus on crime
As the campaigns came to an end, both candidates exchanged criticismbut they also focused on the main issue that defined the contest: crime.
Speaking Thursday behind a transparent protective barrier in the southern city of Temuco, capital of a region shaken by conflict between Mapuche communities and the state, Kast described a country in chaos and promised to restore order.
“This government generated chaos, this government generated disorder, this government generated insecurity,” said the 59-year-old lawyer. “We are going to go the other way, we are going to generate order, security and trust.”
Although Chile remains one of the safest countries in Latin America, A recent rise in organized crime and immigration shook the electorate and has become the biggest concern.
The issue quickly became a headache for Boricwho came to power on a wave of progressive optimism following widespread protests against inequality and interest in drafting a new Constitution.
Boricwho by law could not re-nominate, was quick to adapt, increasing resources for police forcescreating task forces dedicated to combating organized crime and deploying soldiers to the border.
But it was not enough for many voters. Boric struggles with low approval ratings, while Kast’s hardline proposals against crime and migrants have attracted support.
It is likely that a victory of Kast is celebrated by investors, who hope a market-friendly government will push for economic reforms such as deregulation and changes to markets. capital of the copper-rich country.
The Chilean peso strengthened and the benchmark stock index rose following the results of last month’s first round. Although he did not obtain a clear majority in Congress, Kast is expected to be able to approve some economic adjustments if he wins the runoff.
Many of Kast’s views were considered too extreme by voters in 2021. But now they have found a larger audience among an electorate that craves security and is tired of traditional political parties.
These are the first presidential elections with mandatory voting and everyone over 18 years of age enabled to vote. This change adds uncertainty, since polls showed that around 20% are still undecided or say they will vote blank.
During his campaign close on Thursday in the northern city of Coquimbo, Jara promised to be tough on crime, highlighted the need for strong social programs and urged voters not to leave your votes blank.
“To anyone who is thinking of voting null, thinking of voting white, talk to them, there is a lot at stake, we have to move forward and not go backwards”said the 51-year-old lawyer and former Boric Labor Minister.
