As Chile's reforms gather pace, Bachelet's approval ratings rise

President of Chile Michelle Bachelet smiles while being introduced before addressing attendees at Columbia University ahead of the United Nations General Assembly in Manhattan, New York September 26, 2015. REUTERS/Rashid Umar Abbasi/Files

By Rosalba O'Brien SANTIAGO (Reuters) - Approval levels for Chilean President Michelle Bachelet have begun to rebound as the socialist leader puts scandals behind her and her program of reforms gathers momentum. A monthly poll by GfK Adimark on Wednesday showed her approval rating at 29 percent, up 4 percentage points from a month ago to the highest since May. Chile is one of Latin America's most prosperous and stable economies but there are also big inequalities in income and education. Bachelet, who returned to power for a second term in March 2014, was elected on promises that she would tax and spend in order to close the gap. Those pledges looked in danger after a series of blunders, gleefully seized upon by a largely hostile right-wing press, prompting her popularity to tumble to a low of 24 percent by August 2015, down from 58 percent in June 2014. Critics cited contradictory messages about the content of reforms, while a scandal involving a preferential bank loan obtained by her daughter-in-law weighed heavily on the leader who had staked her appeal on her willingness to address Chile's inequality. The pace and depth of reforms has also been slowed by a fall in the price of Chile's top export, copper. But there are indications the president and her 'Nueva Mayoria' center-left coalition may have turned a corner. "Maybe the Nueva Mayoria raised expectations a touch irresponsibly," said Sergio Bitar, a former senior minister who is advising the government on education reform. "(But) I think the low point has passed. Reform debates are stabilizing and the largest part is done." New electoral and tax laws are on the books. The process of writing a new constitution has begun, and Congress is debating giving free university education to the poorest half of society - paid for by the tax reform - and more power to trade unions. Probable tweaks to the pension system, such as a new state-run fund, are up next. The Adimark poll showed rising approval for the reforms. Bachelet also benefits from a continued lack of support for the Alianza, the right-wing coalition that is the chief opposition. The Alianza, which has no clear leader, has been hurt by corruption scandals and is still struggling to shake off its links in the eyes of many Chileans with the 1973-1990 dictatorship. It scored just 15 percent approval rating in Wednesday's survey. The survey polled 1,048 people in October, with an error margin of plus or minus three percentage points. (Reporting by Rosalba O'Brien; Editing by James Dalgleish)