President Javier Milei, known for his drastic budget cuts, celebrated a significant victory in Argentina’s recent legislative elections. This outcome was a critical evaluation of his leadership, especially given former President Trump’s declaration that the election results would influence a potential financial aid package from the United States.
This triumph marks a strong endorsement for Milei, a self-proclaimed anarcho-capitalist who has managed to considerably reduce Argentina’s runaway inflation. The win comes despite recent financial and political turbulence during his term. His party garnered over 40% of the votes, indicating that a substantial portion of the Argentinian populace continues to support his bold libertarian policies, even amidst the hardships caused by his austerity programs.
Addressing his jubilant supporters on Sunday night, President Milei proclaimed, “Today we passed a turning point,” after making a dramatic entrance to the stage and performing a campaign anthem.
He added, “Today begins the building of a great Argentina.”
This electoral success provides Milei with sufficient legislative backing to prevent his vetoes from being overturned, significantly empowering him to advance his ambitious reform agenda.
An image shows President Javier Milei surrounded by a large crowd in Rosario. (Credit: Anita Pouchard Serra for The New York Times)
This triumph also resonated with former President Trump, who had openly supported Milei. Trump had previously stated that a substantial $20 billion currency swap bailout from the United States was dependent on Milei’s performance in these midterm elections.
Trump celebrated on social media, exclaiming, “BIG WIN in Argentina for Javier Milei, a wonderful Trump Endorsed Candidate! He’s making us all look good.”
Milei, a fervent admirer of Trump and the MAGA movement, sees his political success as a strategic asset for the Trump administration. This alignment aims to strengthen American influence across South America, providing a counterbalance to China’s growing presence in the region.
Andrés Martínez-Fernández, a senior policy analyst at the Heritage Foundation specializing in Latin America, described the win as “quite a resounding victory for common sense and pro-U.S. leadership, which Milei very much embodies.” He further noted that it highlights “very clear benefits to countries that try to ally with the U.S. very proactively.”
While financial markets will fully react on Monday morning, initial indications from around-the-clock cryptocurrency trading saw the Argentine peso strengthen, suggesting a positive response from bond, stock, and currency traders.
Outside his party’s headquarters, Milei’s supporters erupted in cheers, with the sounds of AC/DC’s “Highway to Hell” filling the air. Street vendors were seen selling miniature replicas of Milei, complete with his signature chainsaw.
Facundo Manuel Campos, 42, expressed his optimism, stating, “There’s a huge bonanza coming for Argentina. More investments, credit… a normal country.”
An image shows voters at a polling station in Buenos Aires on Sunday. (Credit: Juan Mabromata/Agence France-Presse — Getty Images)
The election saw a 68% voter turnout, the lowest recorded in any national election since Argentina’s return to democracy in 1983. Although voting is compulsory in Argentina, the associated fines for non-compliance amount to less than 50 cents.
Milei has garnered international commendation for his efforts in tackling inflation, successfully reducing it from an annual 160% upon assuming office to approximately 30% this year. This achievement has contributed to a decrease in poverty. Furthermore, his stringent fiscal austerity measures have led to a budget surplus, satisfying international creditors. Throughout his inaugural year in power, Milei maintained a fairly consistent approval rating of around 50%.
However, these drastic spending cuts have caused significant hardship for certain segments of the population. His administration has also faced various corruption allegations involving Milei’s close associates, leading to a roughly 10-point drop in his approval ratings in recent months. A significant setback for his party, La Libertad Avanza (Liberty Advances), in the Buenos Aires provincial elections last month, triggered a collapse in the peso’s value, prompting the Trump administration to extend financial assistance.
Roberto Nolazco, a political scientist at Argentina’s Catholic University, commented on Sunday’s unexpected election outcome: “It was an unexpected result, even for the government.”
Milei’s supporters viewed the financial aid from the United States as a clear indicator that Argentina was moving towards greater 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.”
Another image shows supporters of President Milei gathered in Rosario last week. (Credit: Anita Pouchard Serra for The New York Times)
Analysts attribute the election results partly to a fractured opposition, comprising many of the same political figures rejected by voters two years prior when they first elected Milei, an unconventional economist who gained fame by lambasting the established political class.
Mariel Fornoni, a political analyst with 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 polling stations in Buenos Aires on Sunday expressed a willingness to grant Milei additional time to execute his agenda. They indicated a desire to distance themselves from the fiscally liberal Peronists, whose movement, initiated by former President Juan Perón, has been associated with much of Argentina’s recent economic instability.
Francisco De Sousa Dias, 33, after voting, admitted he wasn’t “a big fan” of Milei, but felt the Peronists were “worse.” He concluded, “Perhaps Milei is not the change we need, but it’s a change.”
In a defiant speech on Sunday night, Axel Kicillof, the governor of Buenos Aires province and a leading opposition figure, addressed his supporters.
Speaking to an audience in La Plata, he declared, “The people suffer and the homeland is not for sale.”
Despite holding a minority of legislative seats during the first half of his term, Milei initially succeeded in passing many of his proposals through Congress. However, lawmakers had recently begun to resist, notably by overriding his vetoes on increased spending for universities and healthcare. With this new victory, such legislative challenges will no longer be feasible.
Milei’s vision includes comprehensive reforms: overhauling labor laws for greater flexibility, implementing deeper cuts to federal spending, easing regulations, reducing taxes, and streamlining bureaucratic processes to stimulate economic activity, boost employment, and increase salaries. He also aims to simplify new company registration.
On Sunday night, Milei reiterated his ambition: “We want to be a country that grows. To make Argentina great again.”
Additional reporting contributed from Buenos Aires by Daniel Politi and Lucía Cholakian.