Argentine President Javier Milei’s party achieved a significant victory in the recent legislative elections, a critical test for his administration. This outcome was closely watched, particularly after former President Trump indicated that U.S. financial support for Argentina hinged on Milei’s success.
This marks a strong affirmation for Mr. Milei, a self-proclaimed anarcho-capitalist who has made strides in combating Argentina’s severe inflation. Despite recent financial and political turbulence and the austerity measures causing public hardship, his party garnered over 40 percent of the vote, indicating continued popular backing for his libertarian vision.
Addressing his jubilant supporters on Sunday night, President Milei declared, “Today we passed a turning point,” after making an entrance with a campaign song.
He further proclaimed, “Today begins the building of a great Argentina.”
This electoral win strengthens Milei’s hand in Congress, providing sufficient legislative backing to safeguard his vetoes from being overturned and enabling him to advance his ambitious reform agenda.
The outcome also served as a triumph for former President Trump, who had openly endorsed Milei. Trump had previously stated that a substantial $20 billion currency swap from the United States to Argentina was dependent on Milei’s performance in these midterm elections.
On social media, Mr. Trump celebrated the results, stating, “BIG WIN in Argentina for Javier Milei, a wonderful Trump Endorsed Candidate! He’s making us all look good.”
As a fervent admirer of Mr. Trump and the MAGA movement, Milei’s political ascent is viewed by the Trump administration as an opportunity to reinforce American influence across South America and to counteract 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 results, calling it “quite a resounding victory for common sense and pro-U.S. leadership, which Milei very much embodies.” He added that it demonstrated “very clear benefits to countries that try to ally with the U.S. very proactively.”
While the full impact on financial markets will emerge on Monday morning, initial indications from bond, stock, and currency traders suggest a positive reception. The Argentine peso, for instance, showed strength in round-the-clock cryptocurrency markets on Sunday night.
Outside his party’s headquarters, Milei’s supporters celebrated enthusiastically, with the AC/DC anthem “Highway to Hell” blaring, and street vendors selling novelty items like miniature chain saws, a nod to his distinctive symbol.
Facundo Manuel Campos, 42, expressed optimism, believing “There’s a huge bonanza coming for Argentina. More investments, credit… a normal country.”
(Image: President Javier Milei of Argentina is seen amidst a large crowd in Rosario.)
Voter turnout for the election was 68 percent, representing the lowest participation rate in a national election since Argentina’s return to democracy in 1983. Despite mandatory voting, the negligible fine for abstaining—less than 50 cents—likely contributed to this.
Internationally, Mr. Milei has been lauded for his efforts in tackling inflation, which drastically decreased from 160 percent annually at the start of his term to approximately 30 percent this year. This progress has helped alleviate poverty and, combined with his stringent fiscal austerity, led to a budget surplus, satisfying international creditors. Throughout his initial year in office, he maintained a steady approval rating of around 50 percent.
However, these extensive spending cuts have caused significant hardship for some segments of the population. Simultaneously, corruption allegations involving Milei’s close associates have contributed to a decline in his approval ratings, dropping by about 10 points recently. Following a notable defeat for his party, La Libertad Avanza (Liberty Advances), in Buenos Aires provincial elections last month, the peso’s value plummeted, prompting the Trump administration to step in with financial aid.
Roberto Nolazco, a political scientist at Argentina’s Catholic University, described Sunday’s vote as “an unexpected result,” even for the government itself.
Milei’s supporters interpreted the financial aid from the United States as a clear indicator of Argentina’s path toward 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.”
(Image: A large outdoor crowd, likely supporters, gathers under Argentina’s flag in Rosario.)
Analysts attributed the election results partly to a fractured opposition, comprising many of the figures previously rejected by voters two years ago when they elected Milei, an outsider economist who gained prominence by critiquing the traditional 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.”
Many voters in Buenos Aires, upon leaving polling stations on Sunday, expressed a willingness to grant Mr. Milei additional time to execute his agenda. They articulated a desire to shift away from the high-spending Peronists, adherents of the movement founded by former President Juan Perón, who have often been associated with Argentina’s historical economic instability.
Francisco De Sousa Dias, 33, while acknowledging he was “not a big fan” of Milei after casting his ballot, stated, “But these guys are worse,” referring to the Peronists. He concluded, “Perhaps Milei is not the change we need, but it’s a change.”
In contrast, Axel Kicillof, the governor of Buenos Aires province and a leading opposition figure, delivered a defiant speech on Sunday evening.
Speaking to an audience in La Plata, Kicillof declared, “The people suffer and the homeland is not for sale.”
During the initial half of his term, despite his party holding a limited number of legislative seats, Mr. Milei initially succeeded in passing many of his proposals through Congress. However, lawmakers had recently begun resisting, notably by overriding his vetoes on increased funding for universities and healthcare. With this new victory, such reversals will no longer be feasible.
Milei’s stated ambitions include comprehensive overhauls of labor laws to introduce more flexible contracts, deeper cuts to federal spending, deregulation, tax reductions, and streamlining bureaucratic processes to stimulate economic activity, boost employment, and raise salaries. He also aims to simplify the registration process for new businesses.
Concluding his remarks on Sunday night, Mr. Milei reiterated his vision: “We want to be a country that grows. To make Argentina great again.”
Daniel Politi and Lucía Cholakian contributed reporting from Buenos Aires.