Moody's bitter week at the Government of Piñera

The number of people working in the Chilean public administration is declining at the fastest pace in at least four years, while the new government of President Sebastián Piñera is trying to reduce the budget deficit. The decline began in April, a few weeks after Piñera took office on March 11.

However, look elsewhere in the report on employment and you will see that salaried workers in the public sector, a broader measure that includes health professionals and education, up from 5.1% per year in June. This level is higher than that of private sector employees, who only increased by 1.6%.

The numbers are known a few days after Moody's became the third credit agency to lower Chile's rating over the past year, citing a deterioration in public finances and increasing pressures to improve services social services, including health and education.

Finance Minister Felipe Larraín said he would work to restore the credit rating Moody's said that "the social pressures to address with greater force demands in areas such as l & rsquo; Education and health around the world, announced austerity measures of more than $ 4 billion for the period.The increase in public spending will pose a major challenge to the efforts of the authorities to adopt less progressive fiscal consolidation measures. "

a Larraín

Yesterday, the moods of the Moody's clbadification have further increased the temperature. During the morning, Ariana Ortiz, Chile's leading badyst, rejected the version of Sebastián Piñera himself and the finance minister, who accused the Bachelet administration of declining risk clbadification. from the country. : "The deterioration we began to observe since 2010 and has been gradual but steady and persistent," said Moody's executive in a note from El Mercurio Inversiones .

In the afternoon, Larraín -whose news articulated a series of responses to explain the situation, interview through, and insisting that yes he will be able to recover the clbadification of the here at 3 or 4 years ago, something that Moody's questioned – went to meet the afternoon of yesterday at Ortiz and noted that the agency was in contradiction. " Moody's action is untimely and when he acts untimely, these paradoxical things happen: that the Chilean risk falls right after we've downgraded" he said. Finally.

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