President Javier Milei’s party secured a significant triumph in Argentina’s recent legislative elections. This outcome was a critical litmus test for his administration, especially as it was tied to the potential for a substantial financial aid package from the United States, a condition reportedly set by President Trump.
This marked a powerful endorsement for Milei, a self-proclaimed anarcho-capitalist who has made strides in reining in Argentina’s rampant inflation. Despite recent financial and political turbulence and the economic hardships brought by his austerity policies, his party’s capture of over 40% of the vote demonstrates a continued public appetite for his radical libertarian agenda.
Addressing his ecstatic supporters on Sunday evening, President Milei declared, “Today we passed a turning point,” following his energetic entrance to a campaign song.
He enthusiastically added, “Today begins the building of a great Argentina.”
This electoral success now grants Milei sufficient congressional backing to safeguard his legislative vetoes, significantly empowering him to advance his ambitious reform programs.
The outcome also represented a win for former President Trump, who had publicly 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 key figure in expanding American influence across South America and countering China’s growing regional presence.
Andrés Martínez-Fernández, a senior policy analyst specializing in Latin America at the Heritage Foundation, commented that it was ‘quite a resounding victory for common sense and pro-U.S. leadership, which Milei very much embodies.’ He further suggested that it highlighted ‘very clear benefits to countries that try to ally with the U.S. very proactively.’
While traditional financial markets would await Monday morning to fully react, early indicators from cryptocurrency markets, which trade continuously, showed the Argentine peso strengthening overnight, suggesting a positive investor sentiment.
Outside his party’s headquarters, jubilant Milei supporters celebrated amidst the blaring sounds of AC/DC’s ‘Highway to Hell,’ with street vendors notably selling miniature figures of the president wielding his signature chainsaw.
Facundo Manuel Campos, 42, expressed optimism, stating, “There’s a huge bonanza coming for Argentina. More investments, credit… a normal country.”
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Voter turnout reached 68 percent, marking the lowest participation in a 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.
Milei has garnered international acclaim for his efforts to control inflation, successfully bringing it down from an annual rate of 160 percent at the start of his term to approximately 30 percent this year. These fiscal austerity measures have also led to a budget surplus, eased concerns of international lenders, and contributed to a reduction in poverty. Throughout his first year, he maintained a steady approval rating of around 50 percent.
However, his rigorous spending cuts have caused significant hardship for many citizens. Compounding these challenges, corruption allegations involving Milei’s close associates led to a 10-point drop in his approval ratings in recent months. A substantial defeat for his party, La Libertad Avanza (Liberty Advances), in Buenos Aires provincial elections last month triggered a collapse in the peso’s value, prompting the Trump administration’s offer of financial backing.
Roberto Nolazco, a political scientist from Argentina’s Catholic University, characterized Sunday’s vote as ‘an unexpected result,’ adding, ‘Even for the government.’
Milei’s supporters interpreted the U.S. assistance as a clear indication that Argentina was progressing towards financial 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.’
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Voter turnout reached 68 percent, marking the lowest participation in a 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.
Milei has garnered international acclaim for his efforts to control inflation, successfully bringing it down from an annual rate of 160 percent at the start of his term to approximately 30 percent this year. These fiscal austerity measures have also led to a budget surplus, eased concerns of international lenders, and contributed to a reduction in poverty. Throughout his first year, he maintained a steady approval rating of around 50 percent.
However, his rigorous spending cuts have caused significant hardship for many citizens. Compounding these challenges, corruption allegations involving Milei’s close associates led to a 10-point drop in his approval ratings in recent months. A substantial defeat for his party, La Libertad Avanza (Liberty Advances), in Buenos Aires provincial elections last month triggered a collapse in the peso’s value, prompting the Trump administration’s offer of financial backing.
Roberto Nolazco, a political scientist from Argentina’s Catholic University, characterized Sunday’s vote as ‘an unexpected result,’ adding, ‘Even for the government.’
Milei’s supporters interpreted the U.S. assistance as a clear indication that Argentina was progressing towards financial 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.’
ImageAnalysts attribute these results partly to a fractured opposition, comprising many of the very leaders rejected by voters two years prior when they first elected Milei—an outsider economist who gained prominence by staunchly critiquing the political establishment.
Mariel Fornoni, a political analyst from Management and Fit, noted 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.’
Numerous voters departing Buenos Aires polling stations on Sunday expressed their willingness to grant President Milei further time to enact his policies. They indicated a desire to distance themselves from the high-spending Peronists—adherents of the movement founded by former president Juan Perón—who have overseen economic instability throughout much of Argentina’s recent past.
Francisco De Sousa Dias, 33, after casting his ballot, admitted he wasn’t ‘a big fan’ of Milei but asserted, ‘But these guys are worse,’ referring to the Peronists. He concluded, ‘Perhaps Milei is not the change we need, but it’s a change.’
Despite holding a limited number of legislative seats during the initial half of his term, Milei initially succeeded in securing congressional approval for many of his proposals. However, lawmakers had recently begun to resist, notably by overriding his vetoes on increased funding for universities and healthcare. With this new victory, such overrides will no longer be feasible.
Milei’s stated agenda includes a comprehensive overhaul of labor laws to introduce greater contractual flexibility, deeper cuts to federal government spending, deregulation, tax reductions, and streamlining bureaucratic processes to stimulate economic activity, employment, and wage growth. He also aims to simplify the registration of new businesses.
Concluding his speech on Sunday night, President Milei stated, “We want to be a country that grows. To make Argentina great again.”