Chile’s post-earthquake political unity breaking up over “privatizing” reconstruction

Chile’s post-quake political unity showing cracks

SANTIAGO, Chile — A political truce forged after Chile’s devastating earthquake is already showing signs of cracking.

Chile’s opposition is challenging President Sebastian Pinera’s appointments and threatening to block a law raising funds for reconstruction, less than a month after the conservative leader took office and lawmakers from across the political spectrum united to confront the Feb. 27 disaster.

Pinera has proposed tax breaks for businesses and individuals donating to a new reconstruction fund, hoping to raise some $155 million toward the public sector costs that may reach as high as $10 billion.

But the political opposition, which holds a majority in Chile’s Senate, dismissed the donation incentives as an example of “privatizing” the reconstruction.

Pinera has also suggested that rebuilding efforts may be financed by selling state firms to private interests, including the energy company Edelnor, which powers major mining operations in the north with a gas pipeline from Argentina. The government could raise nearly $900 million by selling the state’s 40 percent stake in the company.

The opposition is also threatening to hold up Pinera’s appointments for the head of a state television station and a national television council, citing conflicts of interest given the president’s ownership of a leading Chilean TV channel.

During his campaign last year, Pinera promised to sell or cede control of Chilevision to a foundation, and he has attracted criticism from across the political spectrum for delaying the move.

On Wednesday, police arrested 17 people while breaking up a demonstration demanding the reconstruction of an earthquake-damaged bridge.

The mayor of San Pedro, 300 miles (500 kilometers) south of the capital, led a hundred-strong protest over an impassable bridge that once connected his town to neighboring Concepcion. He accused the police of excessive force in breaking up the protest.