Voters Reject Conservative Constitution In Line With Expectations

Voters in Chile rejected the proposed new constitution by a margin of 55.7% to 44.3% in a move that effectively ends the constitutional process that began in Oct 2020 to replace the current constitution that was implemented in the 1980's under authoritarian leader Augusto Pinochet. This was the second referendum on a draft constitution in as many years.

• The first constitutional referendum in Sep 2022 related to a document drafted by a Constitutional Convention formed primarily of representatives from the left of the political spectrum, and rejected by a margin of 61.9% to 38.1%.
• The second draft constitution was put together by a Constitutional Convention that leaned more heavily to the right, resulting in a more socially conservative document.
• In the aftermath of the vote, Boric claimed that the constitutional reform process was now at an end, with focus turning to tax and pension reforms. With his approval rating sitting around 30%, Boric will be fighting an uphill battle, especially given the lack of a majority for parties of the left/centre-left that support his policies in both the Chamber of Deputies and the Senate.
• The end of the constitutional reform process (for now at least) should provide a modicum of stability to the political and business environment after possibilities whipsawing between an anti-investor left-leaning constitution and a more market-friendly right-leaning one. Instead, the result remains the continuation of the current system.