When Argentines go to the polls on Sunday for midterm parliamentary elections, a $20 billion rescue package promised by the Trump administration to President Javier Milei is at stake.
Mr Milei – one of the world’s favorite Latin American MAGA leaders – suffered major losses in local elections in Buenos Aires province last month and there are concerns his coalition could lose a legislative majority in Sunday’s midterm elections. That would effectively kill Mr Milei’s economic reform policy.
President Trump has warned that the aid package is conditional on Mr. Milei’s party remaining in power. Mr Trump said last week that America “will not waste time” on Argentina if Mr Milei is defeated.
“We wouldn’t be generous with Argentina if that happened. If he loses, we won’t be generous with Argentina. We’re going to work very closely with the president. We think he’s going to win,” Mr. Trump said.
Mr. Milei — a self-described “anarcho-capitalist” who came to power on a populist platform of economic reform — has worked to curb runaway inflation and restore growth since winning a landslide election in 2023. He wields a chainsaw as a symbol of his cuts in government spending.
Mr. Milei promised to cut taxes, trim government budgets and end stifling regulations that have hampered economic expansion, but his citizens continue to feel economic pain.
The International Monetary Fund says Mr. Milei’s policies are beginning to work to undo years of left-wing Peronism. Inflation has fallen from over 200 percent to 35 percent, the lowest in five years, and according to IMF projections it will fall to below 10 percent in the coming years.
But Argentina has suffered another sell-off of its peso since last month’s local election results.
The election losses were blamed on government cuts that have hit the middle and lower classes. Mr Milei’s popularity has fallen as purchasing power continues to decline and public services deteriorate. Allegations of corruption have also dogged the government.
“I thought he would put an end to corruption, and today I am totally disappointed,” says retired teacher Jacqueline Garrahan told the AFP news agency.
“Milei didn’t have all his ducks in a row, but we voted for him anyway. What do we do now? Who do we vote for? It’s frustrating,” Ms Garrahan added.
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