Moderate Right Advances in Regional Elections in Chile
Recently, a shift in the political landscape of Chile has seen the moderate right make gains in regional elections held on Sunday. President Gabriel Boric's coalition managed to avoid a significant defeat, which is being interpreted as a sign of a move toward less polarized politics as the country approaches the presidential elections in 2025.
In his speech on Sunday, President Boric acknowledged the mixed results, noting that the outcome has a "bittersweet aspect for all sectors." He emphasized that no group could claim an overwhelming victory.
Market analysts welcomed the election results, asserting that a return to pre-social unrest voting patterns would be positively received by both local and international investors and could potentially benefit stock markets and exchange rates. Jorge Selaive, the chief economist at Scotiabank Chile, highlighted the market rewards of this political shift.
The regional elections followed a period of high political tension in Chile. Protests against inequality in 2019 led to the rise of leftist politics and the election of Boric, as well as the formation of a committee tasked with drafting a new constitution. However, voters rejected both the initial constitutional proposal and a subsequent one prepared by an extreme-right committee.
The results on Sunday increased the number of mayors from the center-right Chile Vamos coalition, strengthening the political position of Evelyn Matthei, a former mayor and potential presidential candidate. Political analyst Kenneth Bunker identified Matthei as a central figure in the upcoming presidential race.
Despite ongoing scandals, including low approval ratings and the resignation of the security forces chief amid a sexual assault investigation, Boric's government did not experience the landslide defeat that some had predicted.
The extreme-right Republicans also made some progress at the municipal level, but Valparaiso University analyst Guillermo Holzmann pointed out that their performance fell short of their own expectations. Campaigns promising to enhance security, a primary concern for voters, did not lead to the anticipated overwhelming victories.
Due to the inability of most governors to achieve a definitive victory, a second round has been scheduled for November 24, and Holzmann believes this will further illuminate the presidential election race. The ruling coalition has not yet announced any front-runner candidates for the presidential election, and consecutive re-election is not permitted in Chile.