Dec 3 (Reuters) - Chile’s presidential election is a three-way race between a conservative billionaire, a former president from the ruling center-left coalition and an ex-film producer running as an independent.
The two leading candidates in the Dec. 13 election — center-right businessman Sebastian Pinera, who is tipped to win, and center-left former President Eduardo Frei — likely will keep the prudent fiscal policies that have made Chile’s economy one of Latin America’s most stable, analysts say.
But Pinera wants the private sector to take more leadership in stimulating the economy and creating new jobs, while Frei emphasizes the state’s role but has not yet announced his economic policy platform.
Left-leaning independent Marco Enriquez-Ominami, 36, has broken away from the ruling coalition and advocates tighter state control over health, education, transport and social security. He also would raise taxes on mining and the corporate sector and lower income tax.
Enriquez-Ominami, who is running third and seen missing a run-off, told Reuters on Thursday he would not forge pacts with leftist rivals seeking to block a Pinera win, which analysts say ultimately could help the right to power. [ID:nN03434892]
The policies of the three main candidates are as follows:
* Spur economic growth of 6 percent per year and create 1 million jobs between 2010-2014.
* Give incentives to private sector, particularly small- and mid-sized companies, to fuel job creation and spur economic growth rather than rely on state.
* Allow private pension funds to take up to a combined 20 percent stake in state copper giant Codelco [CODEL.UL].
* Revamp management of state sector giants like Codelco and state-run oil firm ENAP, as well as decentralizing the state.
* Look at merging regulators of the bourse and banks.
* Foster investment in alternative energy sources and mining exploration.
* Offer tax incentives for private miners to develop new technology and expand research.
* Introduce legal rights for same sex couples but oppose gay marriage.
* Continue with President Michelle Bachelet’s welfare programs and expand them to include the middle class.
* Introduce labor reform that would create more unions to include millions of workers who do not benefit from collective wage negotiations.
* Gradually reduce pensioners’ public health system contributions from 7 percent.
* Be open to studying alternative energy sources, including nuclear power.
* Make private health providers and pension funds give details on earnings and dividend payments.
* Review a water concession law pitting farming communities against mining companies in the mineral-rich Atacama desert.
* Look at legal rights for same sex couples and open debate on abortion.
Marco Antonio Enriquez-Ominami: [nN03434892]
* Raise royalties on key copper mining sector to 8 percent from 5 percent to collect an extra $400 million a year.
* Tax hydroelectric plants to raise another $450 million and debate raising levies on salmon and forestry industries.
* Raise taxes on companies, alcohol, tobacco and lower the upper limit on individuals’ income tax to 30 percent.
* Scrap tax exemptions to bring in $1.5 billion a year.
* Create a state pension fund system.
* Increase state’s role in transport, health, housing, education and social security and raise government spending on infrastructure and public works projects.
* Revise rule keeping structural fiscal surplus at 0.5 percent of GDP to 0 percent.
* Open about 5 percent of Codelco to workers and/or an eventual state pension fund.
* Regulate digital television services.
* Allow gay unions.
* Change system of government to Westminster style hybrid, to include president and prime minister.
Reporting by Simon Gardner in Santiago, Rodrigo Martinez and Alonso Soto; Editing by Bill Trott firstname.lastname@example.org; +562-370-4250; Reuters Messaging: email@example.com