Argentina’s libertarian President Javier Milei scored decisive wins in key districts in Sunday’s midterm elections, consolidating support for his radical free-market agenda and securing billions of dollars in backing from the Trump administration.
Widely viewed as a referendum on Milei’s first two years in office, the election saw his party, La Libertad Avanza, capture more than 40% of the vote, compared with 31% for the left-leaning Peronist opposition, exceeding analysts’ projections. The victory gives Milei’s party and its allies 14 seats in the Senate and 64 in the lower house, strengthening the government’s position to uphold presidential vetoes and block impeachment attempts.
At party headquarters in Buenos Aires, Milei hailed the results as a mandate to pursue spending cuts and implement ambitious tax and labor reforms, while also positioning himself for a potential reelection bid in 2027. “The Argentine people have decided to leave behind 100 years of decadence,” Milei declared, referring to decades of Peronist administrations that presided over recurring inflation crises and sovereign debt defaults.
High stakes for U.S. support
The midterms drew intense attention from Washington and global markets. U.S. President Donald Trump had linked a $40 billion financial support package—including a $20 billion currency swap with Argentina’s central bank and $20 billion in private loans—to Milei’s performance, threatening to withhold aid if the Peronists prevailed. The tense backdrop added pressure on Milei, who had struggled to stabilize the peso and prevent a currency crisis in recent weeks.
With Milei’s electoral success, Argentina’s markets were expected to rally. Analysts said the outcome reassures investors that Milei’s economic program could be sustainable, while leaving the Peronist opposition weakened and divided.
Electoral map reflects growing support
Milei’s party gained ground nationwide, including in Peronist strongholds. In Buenos Aires province, home to nearly 40% of the electorate, La Libertad Avanza narrowly triumphed after losing by 14 points in provincial elections last month. Other agricultural powerhouses, including Santa Fe and Córdoba, also backed Milei, drawn by his deregulation policies and tariff cuts benefiting the farming sector.
Challenges remain amid austerity
Despite the midterm gains, Milei must still navigate a fragmented legislature to advance his agenda. Experts caution that coalition-building will be essential to sustain control and pass reforms.
The election also reflects public divisions over Milei’s austerity measures. While budget cuts have reduced inflation from 289% in April 2024 to 32% last month, many Argentines continue to struggle with rising costs and shrinking pensions. In Puerto Madero, some sectors praise the president for boosting foreign investment and lifting currency restrictions, while in poorer neighborhoods, citizens report hardship under his reforms.
Electoral authorities reported a turnout of just under 68%, among the lowest since Argentina’s 1983 return to democracy. “I vote out of obligation, nothing more,” said Matías Paredes, a real estate broker, reflecting widespread public fatigue with the political class.
Source: AP