Ignoring that the contexts, management inheritances, and realities on either side of the Andes are different, several measures implemented by President José Antonio Kast in his early days resemble those taken in Argentina by Javier Milei, his main geopolitical and ideological ally in South America. Milei's mantra of "there's no money" while wielding a chainsaw resonated deeply with Kast, who has already positioned himself behind a comprehensive fiscal adjustment. **Adjustment in the State and Educational Cuts** In Chile, each cabinet secretary received the order to permanently cut 3% of spending in their respective portfolios, which collectively would save nearly $3 billion.
Simultaneously, Finance Minister Jorge Quiroz must execute a reduction of $6 billion in the first 18 months, supported by a mega-bill called "National Reconstruction," which will include tax reform, incentives for formal employment, benefits for capital repatriation with a rate close to 8%, and a temporary elimination of VAT on new housing, among other measures. The plan is complemented by Decree No. 2, which establishes a comprehensive audit of the State to review hiring and budget execution.
In this context of austerity, Kast illustrated the moment in an interview with Canal 13 by mentioning that there is supposedly an unused piano in La Moneda that needs repair, but he had to ask for help "ad honorem" because, as he said, there are no available resources. Another announced cut, perhaps one of the most controversial among the middle and lower classes, relates to education. Quiroz has already indicated that the reform will include age limits for free university education, a review of the number of teachers and assistants, and a halt to the extension to new deciles.
In Argentina, where university education has been public and free since 1949, Milei vetoed last year the law that tied the university budget and teacher salaries to inflation, but Congress reversed it. The discussion regarding the higher education situation, which faces budget cuts, led to several protests in the streets of major Argentine cities. **"Tough on Illegal Immigrants" and Borders like Trump** With the promise to toughen immigration policy, Kast launched the "Border Shield Plan" from Arica and Parinacota, one of the most sensitive areas due to irregular entry from Peru.
On the ground at the Chacalluta complex, the construction of fences up to five meters high, ditches, and a reinforced se…
"We want to use these excavators to build a sovereign Chile," the president stated, asserting that the country has been "vulnerable to illegal immigration, drug trafficking, and organized crime" and that they now seek to close that "window" that allowed irregular entry for years. Among Milei's measures regarding immigration control, Decree No. 366/2025 implemented some modifications related to the deportation of foreigners committing crimes, tightening access to Argentine citizenship, and the payment for health services (requiring a sworn declaration of health insurance) and education (allowing national universities to charge foreigners if they wish).
Regarding borders specifically, the episode from February 2025 is recalled when then-Minister of Security, Patricia Bullrich, visited the northern province of Salta to install a fence approximately 2. 5 meters high and 200 meters long on the border with Bolivia, due to its association with drug trafficking. **Cooperation Agreement with the United States for Rare Earths** The measure that Kast formalized on March 12 is identical to that of Milei's government last month, when Argentine Chancellor Pablo Quirno signed a strategic partnership with the United States to strengthen the supply, mining, and processing of critical minerals, key inputs for the global economy, energy transition, and international security.
It is estimated that Argentina has potential in rare earths, those 17 critical elements for technology and energy, with about 190,000 tons identified and millions more in potential resources. Their most relevant use is associated with permanent magnets, essential for electric vehicles, renewable energies, and consumer electronics, such as cell phones, televisions, and monitors. As analyzed by BioBioChile, the main deposits of rare earths in Chile are located in the commune of Penco, Biobío Region, about 15 km from Concepción; they also exist in the northern area, between Coquimbo and Copiapó.
The interest of the United States in South American territory is not coincidental. China holds the largest reserves of rare earths in the world: while it possesses a third of them, it has been responsible for more than 90% of global production and supply over the last decade. **The Battle for Football** Even in the sports realm, there have been coincidences in the interventions of the Argentine and Chilean governments, albeit in entirely different scenarios.
In Argentina, since the beginning of his administration, Milei has sought the creation of Sports Anonymous Societies (SAD), but faces strong resistance from the Argentine Football Association (AFA) and allied clubs that, for resource and political convenience, faithfully respond to the powerful Claudio "Chiqui" Tapia. In July 2024, the libertarian promoted deregulation so that clubs could "transform" and operate as SAD, encouraging private and foreign investment, but months later, the judiciary upheld the AFA's request and suspended changes to articles 335 and 345 of DNU No. 70/2023.
The battle is currently lost for the Casa Rosada, while the relationship between Milei and the football leaders remains broken, with allegations of tax evasion against Tapia topping the headlines. While SADs have been a reality in Chile since 2005 with Law No. 20.
019, the experience has led to the urgency of advancing reforms that only gained importance last Monday, less than a week after Kast's arrival, by giving utmost urgency to the project regulating SADs that had been "shelved" during Gabriel Boric's time. Among the proposed changes by the government to Chilean football is the elimination of multi-ownership, meaning preventing the same person or economic administration from being in charge of more than one professional football club to avoid conflicts of interest; restricting the participation of representatives in club ownership; and separating the National Professional Football Association (ANFP) and the Chilean Football Federation (FFCH), striving for greater autonomy and transparency.
