A police truck sprays water canons at protesters, amid ongoing demonstrations triggered by an increase in subway fares in Santiago, Chile. Picture: AP Photo/Miguel Arenas

Santiago – Chilean President Sebastian Pinera said on Monday evening he would meet opposition leaders to forge a “new social contract” to alleviate inequality as thousands of Chileans defied a military curfew in protest marches around the capital.

Pinera struck a conciliatory tone in a national address from the Moneda Palace in Santiago after declaring on Sunday from the city’s military barracks that the country was “at war” against vandals, a statement that sparked outrage in some quarters.

“If sometimes I have spoken harshly… it’s because it makes me indignant to see the damage and pain that this violence causes,” the 69-year-old conservative billionaire said.

Thousands of Chileans poured into Santiago’s central squares on Monday to protest high living costs after a weekend of looting, arson and clashes with security forces killed 11 people.

The crisis was sparked by protests over an increase in public transport fares but reflects simmering anger over intense economic inequality in Chile, as well as costly health, education and pension systems seen by many as inadequate.