Argentina’s outspoken, budget-cutting President Javier Milei secured a resounding victory in Sunday’s legislative elections. This was a critical moment for his administration, with former President Trump publicly stating the outcome would determine whether the U.S. offered significant financial aid to the nation.
This emphatic win saw Mr. Milei’s party capture over 40% of the vote. The self-proclaimed anarcho-capitalist has dramatically tackled Argentina’s runaway inflation, though his presidency has also seen recent financial and political turbulence. The results clearly demonstrate that a significant portion of Argentines remain committed to his radical libertarian reforms, even as his austerity policies cause considerable hardship.
Addressing jubilant supporters on Sunday night, Milei declared, “Today we passed a turning point,” following his energetic entrance to the stage, where he even sang a campaign anthem.
He enthusiastically proclaimed, “Today begins the building of a great Argentina.”
Crucially, this electoral success grants Milei sufficient congressional backing to block any attempts to overturn his vetoes, thereby solidifying his power to push forward with his ambitious legislative plans.
The outcome also marks a win for former President Trump, who had openly supported Milei and linked a potential $20 billion U.S. currency swap bailout to his performance in these midterms. Milei, a vocal admirer of Trump and the MAGA movement, is viewed by the Trump administration as a strategic ally to strengthen American influence in South America and push back against China’s growing presence.
Andrés Martínez-Fernández, a senior policy analyst at the Heritage Foundation specializing in Latin America, commented on the results, calling it “quite a resounding victory for common sense and pro-U.S. leadership, which Milei very much embodies.” He added that it highlights “very clear benefits to countries that try to ally with the U.S. very proactively.”
While traditional financial markets awaited Monday’s opening for their full reaction, early indications were positive. The Argentine peso saw a boost in 24/7 cryptocurrency markets Sunday night, suggesting a favorable response from traders.
Outside the party headquarters, Milei’s supporters celebrated energetically, with the classic AC/DC track “Highway to Hell” blaring as street vendors capitalized on the mood, selling miniature figures of the president clutching his signature chainsaw.
“A huge bonanza is on its way for Argentina,” exclaimed 42-year-old Facundo Manuel Campos, envisioning “more investments, credit… a normal country.”
Voter participation stood at 68%, marking the lowest turnout in any national election since Argentina’s return to democracy in 1983. Despite mandatory voting laws, the penalties for not casting a ballot amount to less than 50 cents, potentially contributing to the reduced engagement.
Milei has garnered international acclaim for his efforts in taming Argentina’s rampant inflation, which plummeted from an alarming 160% annually at the start of his term to roughly 30% this year. These fiscal austerity measures have not only contributed to a budget surplus, satisfying international lenders, but also played a role in poverty reduction. Throughout his first year, he maintained a solid approval rating hovering around 50%.
However, these severe spending cuts have caused significant hardship for many citizens. Compounding this, recent corruption allegations involving Milei’s close associates led to a roughly 10-point drop in his approval ratings. Following a major setback for his party, La Libertad Avanza (Liberty Advances), in provincial elections in Buenos Aires last month, the peso’s value sharply declined, prompting the Trump administration’s offer of financial assistance.
“It was an unexpected result,” remarked Roberto Nolazco, a political scientist from Argentina’s Catholic University, referring to Sunday’s vote. “Even for the government itself.”
For Milei’s ardent supporters, the financial backing from the United States signaled a clear path toward Argentina’s much-needed economic stability.
Virginia Giménez, 55, standing with her son outside Milei’s 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 largely attributed the election outcome to a fractured opposition, composed largely of the same political figures rejected by voters two years prior when they first elected Milei – an unconventional economist who gained prominence by fiercely critiquing the established political elite.
Mariel Fornoni, a political analyst from Management and Fit polling company, observed that “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.”
On Sunday, numerous voters departing polling stations in Buenos Aires expressed a willingness to grant Milei more time to execute his vision. They conveyed a strong desire to depart from the legacy of high-spending Peronists—adherents of the movement founded by former President Juan Perón—who have historically overseen much of Argentina’s economic turbulence.
Francisco De Sousa Dias, 33, after casting his ballot, admitted he wasn’t “a big fan” of Milei but felt the Peronists were “worse.” He mused, “Perhaps Milei is not the change we need, but it’s a change.”
In the initial half of his term, despite his party holding a limited number of legislative seats, Milei successfully guided many of his proposals through Congress. However, in recent times, lawmakers had increasingly resisted, notably by overriding his vetoes on funding increases for universities and healthcare. With this new victory, such legislative challenges will likely become a thing of the past.
Milei’s agenda includes radical reforms: overhauling labor laws for greater flexibility, deepening federal government cuts, easing regulations, reducing taxes, and streamlining bureaucracy to stimulate economic activity, create jobs, and raise incomes. He also aims to simplify new business registration.
“We want to be a country that grows,” Milei declared on Sunday night, echoing a familiar political slogan: “To make Argentina great again.”
Additional reporting by Daniel Politi and Lucía Cholakian from Buenos Aires.