Argentina’s president, Javier Milei, known for his radical budget cuts, celebrated a major victory in Sunday’s legislative elections. This outcome was a critical evaluation of his administration, particularly after former President Trump had hinted that continued U.S. financial support depended on Milei’s success.
The win marks a powerful endorsement for Mr. Milei, a self-proclaimed anarcho-capitalist who has made significant strides in taming Argentina’s rampant inflation. Despite recent financial and political turbulence and the economic hardship caused by his austerity measures, his party garnered over 40 percent of the vote, indicating that a substantial portion of the Argentine electorate remains committed to his libertarian agenda.
Addressing his jubilant supporters on Sunday evening, Mr. Milei declared, “Today we passed a turning point. Today begins the building of a great Argentina.”
This electoral triumph grants Mr. Milei the crucial legislative backing needed to override vetoes, positioning him strongly to advance his ambitious reforms.
The victory also served as a win for former President Trump, who had publicly supported Mr. Milei. Trump had tied a potential $20 billion U.S. currency swap bailout to the midterm election results. Mr. Milei, a vocal admirer of Mr. Trump and the MAGA movement, is seen by the Trump administration as a key figure in expanding American influence in South America and counteracting China’s growing presence in the region.
Andrés Martínez-Fernández, a senior policy analyst specializing in Latin America at the Heritage Foundation, commented on the outcome: “It was quite a resounding victory for common sense and pro-U.S. leadership, which Milei very much embodies.” He added that it also demonstrated “very clear benefits to countries that try to ally with the U.S. very proactively.”
While formal market reactions will emerge on Monday, initial signs were positive. The Argentine peso saw an immediate strengthening in around-the-clock cryptocurrency markets Sunday night.
Outside the party’s headquarters, supporters cheered amidst the sounds of AC/DC’s “Highway to Hell,” with street vendors selling miniature replicas of Mr. Milei wielding his signature chainsaw.
Facundo Manuel Campos, 42, expressed optimism: “There’s a huge bonanza coming for Argentina. More investments, credit … a normal country.”
Despite compulsory voting in Argentina, which carries minimal fines for non-participation, voter turnout stood at 68 percent—the lowest for any national election since the restoration of democracy in 1983.
Mr. Milei has earned international acclaim for dramatically reducing inflation, from an annual rate of 160 percent at the start of his term to approximately 30 percent this year. This achievement has contributed to a decrease in poverty and his fiscal discipline has yielded a budget surplus, satisfying international creditors. Throughout his first year, he maintained a relatively steady approval rating of around 50 percent.
However, his drastic spending cuts have caused considerable hardship for segments of the population. Coupled with recent corruption allegations involving his inner circle, these factors led to a roughly 10-point drop in his approval ratings in recent months. A significant defeat for his party, La Libertad Avanza (Liberty Advances), in provincial elections in Buenos Aires last month further destabilized the peso, prompting the Trump administration to step in with financial aid.
Roberto Nolazco, a political scientist at Argentina’s Catholic University, found the election results surprising, even for the government itself.
For Mr. Milei’s loyalists, the financial backing from the United States symbolized Argentina’s path toward economic stability.
Virginia Giménez, 55, standing with her son outside the party headquarters, shared her relief: “Before 2023, my children were thinking of leaving the country. But I’m happy to be here tonight, with my son by my side.”
Analysts attributed the outcome partly to a fractured opposition, which largely consisted of the same political figures rejected by voters two years prior when Mr. Milei, an outsider economist who gained fame by critiquing the traditional political class, was elected.
Mariel Fornoni, a political analyst and head of Management and Fit, a polling firm, observed, “People gave him another vote of confidence despite the economic hardships, despite the corruption allegations. And that largely has to do with what alternatives were available.”
Many voters in Buenos Aires expressed a willingness to grant Mr. Milei more time to implement his agenda. They voiced a desire to move past the high-spending Peronists, whose movement, initiated by former President Juan Perón, has historically been associated with economic instability in Argentina.
Francisco De Sousa Dias, 33, while acknowledging he wasn’t “a big fan” of Mr. Milei, stated, “But these guys are worse,” referring to the Peronists. “Perhaps Milei is not the change we need, but it’s a change,” he reflected.
Despite holding a minimal number of legislative seats earlier in his term, Mr. Milei initially succeeded in getting many of his proposals approved by Congress. More recently, however, lawmakers had begun to resist, notably overturning his vetoes on increased funding for universities and healthcare. With this new victory, such legislative pushback will no longer be possible.
Mr. Milei’s plans include overhauling labor laws for greater flexibility, deepening federal government cuts, easing regulations, reducing taxes, and streamlining bureaucratic processes to stimulate economic activity, employment, and salaries. He also aims to simplify company registration.
“We want to be a country that grows,” Mr. Milei reiterated Sunday night, “To make Argentina great again.”